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Early Corrective Action For Troubled Banks

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  • GEORGE E. French

Abstract

This paper presents data concerning the performance of the U.S. commercial bank supervisory system and identifies a number of needed improvements in areas including: (i) rules governing bank loss recognition, (ii) supervisory response to excessive loan concentrations and poor underwriting standards, (Hi) rules governing dividend payments by troubled banks, and (iv) the early closure or resolution of troubled banks.

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  • GEORGE E. French, 1992. "Early Corrective Action For Troubled Banks," Contemporary Economic Policy, Western Economic Association International, vol. 10(4), pages 103-113, October.
    • Handle: RePEc:bla:coecpo:v:10:y:1992:i:4:p:103-113
    DOI: 10.1111/j.1465-7287.1992.tb00365.x
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    References listed on IDEAS

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    1. James R. Barth & Carl D. Hudson & Daniel E. Page, 1991. "The Need To Reform The Federal Deposit Insurance System," Contemporary Economic Policy, Western Economic Association International, vol. 9(1), pages 24-35, January.
    2. Herbert L. Baer, 1985. "Private prices, public insurance: The pricing of federal deposit insurance," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 9(Sep), pages 45-57.
    3. Edward J. Kane, 1987. "No Room for Weak Links in the Chain of Deposit Insurance Reform," NBER Working Papers 2317, National Bureau of Economic Research, Inc.
    4. Mingo, John J, 1975. "Regulatory Influence on Bank Capital Investment," Journal of Finance, American Finance Association, vol. 30(4), pages 1111-1121, September.
    5. Dahl, Drew & Shrieves, Ronald E., 1991. "The impact of regulation on bank equity infusions," Journal of Banking & Finance, Elsevier, vol. 15(2), pages 467-468, April.
    6. Wall, Larry D. & Peterson, David R., 1987. "The effect of capital adequacy guidelines on large bank holding companies," Journal of Banking & Finance, Elsevier, vol. 11(4), pages 581-600, December.
    7. Richard E. Randall, 1989. "Can the market evaluate asset quality exposure in banks?," New England Economic Review, Federal Reserve Bank of Boston, issue Jul, pages 3-24.
    8. R. Alton Gilbert, 1991. "Supervision of undercapitalized banks: is there a case for change?," Review, Federal Reserve Bank of St. Louis, issue May, pages 16-30.
    9. Peltzman, Sam, 1970. "Capital Investment in Commercial Banking and Its Relationship to Portfolio Regulation," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 1-26, Jan.-Feb..
    10. Edward J. Kane, 1985. "The Gathering Crisis in Federal Deposit Insurance," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262611856, December.
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    Cited by:

    1. Dahl, Drew & Spivey, Michael F., 1995. "Prompt corrective action and bank efforts to recover from undercapitalization," Journal of Banking & Finance, Elsevier, vol. 19(2), pages 225-243, May.

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