IDEAS home Printed from https://ideas.repec.org/a/spt/apfiba/v6y2016i4f6_4_1.html
   My bibliography  Save this article

Determinants of Financial and Temporal Endurance of Commercial Banks during the Late 2000s Recession: A Split-Population Duration Analysis of Bank Failures

Author

Listed:
  • Xiaofei Li
  • Cesar L. Escalante

Abstract

This paper presents an application of the split-population duration model in identifying operating strategies and structural attributes of commercial banks that increased their financial and temporal endurance (translated into probability and duration of survival, respectively) during the late 2000s recession. This study’s results identify the isolated effects of certain variables on a bank’s temporal endurance that have not been captured by other commonly used survival models. For instance, delinquency rates for consumer and industrial loans have separate adverse effects on the banks’ chances of survival and temporal endurance, respectively, while real estate loan delinquency rates negatively affect both survival parameters. Aside from the loan portfolio composition effects, interest rate risk, fund sourcing strategies, and business size could also significantly influence a bank’s survival through the financial crises.

Suggested Citation

  • Xiaofei Li & Cesar L. Escalante, 2016. "Determinants of Financial and Temporal Endurance of Commercial Banks during the Late 2000s Recession: A Split-Population Duration Analysis of Bank Failures," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(4), pages 1-1.
    • Handle: RePEc:spt:apfiba:v:6:y:2016:i:4:f:6_4_1
    as

    Download full text from publisher

    File URL: http://www.scienpress.com/Upload/JAFB%2fVol%206_4_1.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spt:apfiba:v:6:y:2016:i:4:f:6_4_1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.scienpress.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.