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The resilience of the U.S. banking system

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  • Theophilos Papadimitriou
  • Periklis Gogas
  • Anna Agrapetidou

Abstract

We investigate the resilience of the whole U.S. banking system (5,826 banks) over the period 2000–2018. In doing so, we employ a state‐of‐the‐art bank failure forecasting model (Gogas et al., 2018) and we uncover the evolution of the safety margin from failure for all individual U.S. banks and the banking sector as a whole every year. We provide evidence that in recent years a lower competition and new regulations widened the safety margin of the banking system, resulting in a healthier financial sector as banks become less in total number but act more prudently.

Suggested Citation

  • Theophilos Papadimitriou & Periklis Gogas & Anna Agrapetidou, 2022. "The resilience of the U.S. banking system," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2819-2835, July.
    • Handle: RePEc:wly:ijfiec:v:27:y:2022:i:3:p:2819-2835
    DOI: 10.1002/ijfe.2300
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