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Too-big-to-fail: Bank failure and banking policy in Jamaica

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Listed:
  • Daley, J.
  • Matthews, K.
  • Whitfield, K.

Abstract

Research on the causes of bank failure has focused on developed countries, particularly the United States of America. Relatively little empirical work has examined developing countries. We examine the total population of banks in Jamaica between 1992 and 1998 and find that real GDP growth, size, and managerial efficiency were the most significant factors contributing to the failure of banks. Bank failure is defined to include bailout and regulator-induced or supervised merger. Our results suggest that there were implicit 'too-big-to-fail' policies during this period.

Suggested Citation

  • Daley, J. & Matthews, K. & Whitfield, K., 2008. "Too-big-to-fail: Bank failure and banking policy in Jamaica," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(3), pages 290-303, July.
  • Handle: RePEc:eee:intfin:v:18:y:2008:i:3:p:290-303
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    Cited by:

    1. Ummad Mazhar & Ceyhun Elgin, 2013. "Environmental Regulation, Pollution and the Informal Economy," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 9, pages 62-81.
    2. José Eduardo Gómez González & Ines Paola Orozco Hinojosa, 2010. "Un modelo de alerta temprana para el sistema financiero colombiano," Revista Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 28(62), pages 124-147, June.
    3. repec:eee:spacre:v:17:y:2014:i:1:p:58-70 is not listed on IDEAS
    4. Daley, Jenifer & Matthews, Kent, 2009. "Efficiency and Convergence in the Jamaican banking sector 1998-2007," Cardiff Economics Working Papers E2009/30, Cardiff University, Cardiff Business School, Economics Section.
    5. Jenifer Daley & Kent Matthews & Tiantian Zhang, 2013. "Post-crisis cost efficiency of Jamaican banks," Applied Financial Economics, Taylor & Francis Journals, vol. 23(20), pages 1599-1607, October.
    6. Maghyereh, Aktham I. & Awartani, Basel, 2014. "Bank distress prediction: Empirical evidence from the Gulf Cooperation Council countries," Research in International Business and Finance, Elsevier, vol. 30(C), pages 126-147.
    7. repec:eee:spacre:v:19:y:2016:i:2:p:227-238 is not listed on IDEAS
    8. Jean-michel Sahut & Medhi Mili, 2010. "Are Mergers a Solution to Bank Distress in MENA Countries?," Economics Bulletin, AccessEcon, vol. 30(4), pages 2627-2641.
    9. Salvador Marín Hernández & Ester Gras Gil & Marcos Antón Renart, 2011. "Financial information and restructuring of spanish savings banks in a context of crisis. Changes in the regulation; content and evolution of FROB," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 73, pages 99-126, October.
    10. Daley, Jenifer & Matthews, Kent, 2009. "Measuring bank efficiency: tradition or sophistication? - A note," Cardiff Economics Working Papers E2009/24, Cardiff University, Cardiff Business School, Economics Section.
    11. Lin, Ching-Chung & Yang, Shou-Lin, 2016. "Bank fundamentals, economic conditions, and bank failures in East Asian countries," Economic Modelling, Elsevier, vol. 52(PB), pages 960-966.
    12. repec:nax:conyad:v:62:y:2017:i:5:p:5-6 is not listed on IDEAS
    13. Vithessonthi, Chaiporn, 2014. "The effect of financial market development on bank risk: evidence from Southeast Asian countries," International Review of Financial Analysis, Elsevier, vol. 35(C), pages 249-260.
    14. Daley, Jenifer & Matthews, Kent, 2009. "Measuring post-crisis productivity for Jamaican banks," Cardiff Economics Working Papers E2009/29, Cardiff University, Cardiff Business School, Economics Section.
    15. Yucel, Eray, 2011. "A Review and Bibliography of Early Warning Models," MPRA Paper 32893, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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