IDEAS home Printed from https://ideas.repec.org/a/taf/apfiec/v7y1997i6p695-701.html
   My bibliography  Save this article

An exploratory empirical analysis of the impact of the Federal Deposit Insurance Corporation Improvement Act of 1991 on bank failures in the United States

Author

Listed:
  • R. J. Cebula

Abstract

This study examines the impact of the Federal Deposit Insurance Corporation Improvement Act of 1991 on bank failures in the United States. After summarizing a number of the most important provisions in this legislation and presenting certain relevant data, the study provides an exploratory empirical analysis that allows for variables such as the cost of deposits and other interest rates, capital/asset ratios, federal deposit insurance coverage, real GDP growth, and increased competition within the industry. The reduced-form estimates find that the statute in question appears to have reduced the failure rate of commercial banks in the United States

Suggested Citation

  • R. J. Cebula, 1997. "An exploratory empirical analysis of the impact of the Federal Deposit Insurance Corporation Improvement Act of 1991 on bank failures in the United States," Applied Financial Economics, Taylor & Francis Journals, vol. 7(6), pages 695-701.
    • Handle: RePEc:taf:apfiec:v:7:y:1997:i:6:p:695-701
    DOI: 10.1080/758533862
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/758533862
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/758533862?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James R. Barth, 1991. "The Great Savings and Loan Debacle," Books, American Enterprise Institute, number 918256, September.
    2. Edward J. Kane, 1985. "The Gathering Crisis in Federal Deposit Insurance," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262611856, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert Weigand & Donald Fraser & Babu Baradwaj, 1999. "FDICIA and bank failure contagion: Evidence from the two failures of first city bancorporation," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 23(1), pages 99-111, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John B. Shoven & Scott B. Smart & Joel Waldfogel, 1992. "Real Interest Rates and the Savings and Loan Crisis: The Moral Hazard Premium," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 155-167, Winter.
    2. Goldberg, Lawrence G. & Hudgins, Sylvia C., 1996. "Response of uninsured depositors to impending S&L failures: Evidence of depositor discipline," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(3), pages 311-325.
    3. Ramon P. DeGennaro & James B. Thomson, 1992. "Capital forbearance and thrifts: an ex post examination of regulatory gambling," Working Papers (Old Series) 9209, Federal Reserve Bank of Cleveland.
    4. Ira Saltz, 1997. "Federal deposit insurance coverage and bank failures: A cointegration analysis with semi-annual data, 1965–91," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 21(3), pages 3-9, September.
    5. William Gissy, 2000. "Regulatory forbearance: A reconsideration," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(4), pages 722-729, November.
    6. Usha Reichert, 1997. "A brief note examining the impact of federal deposit insurance on savings and loan failures using granger causality tests," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 21(3), pages 61-64, September.
    7. Elijah Brewer & Thomas H. Mondschean, 1992. "Ex ante risk and ex post collapse of S&Ls in the 1980s," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 16(Jul), pages 2-12.
    8. Richard J. Cebula, 1996. "Geographic Differentials In The Rate Of Return On Savings And Loan Assets," The Review of Regional Studies, Southern Regional Science Association, vol. 26(1), pages 41-53, Summer.
    9. Richard J. Cebula & Willie J. Belton, 1996. "An Empirical Analysis Of Determinants Of Geographic Differentials In The Bank Closing Rate In The United States, 1989-1994, Using The Heteroskedastic-Tobit Model," The Review of Regional Studies, Southern Regional Science Association, vol. 26(3), pages 341-350, Winter.
    10. Richard Cebula & Willie Belton, 1997. "An empirical note on the impact of federal deposit insurance on bank failures in the U.S," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(3), pages 281-287, August.
    11. James Barth & Philip Bartholomew & Peter Elmer, 1997. "The value of tax benefits and the cost of liquidating versus selling failed thrift institutions," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 21(2), pages 3-11, June.
    12. Guo, Lin, 2003. "Inferring market information from the price and quantity of S&L deposits," Journal of Banking & Finance, Elsevier, vol. 27(11), pages 2177-2202, November.
    13. Kane, Edward J., 1995. "Three paradigms for the role of capitalization requirements in insured financial institutions," Journal of Banking & Finance, Elsevier, vol. 19(3-4), pages 431-459, June.
    14. Richard Cebula, 1999. "New evidence on determinants of bank failures in the US," Applied Economics Letters, Taylor & Francis Journals, vol. 6(1), pages 45-47.
    15. George J. Benston & George G. Kaufman, 1997. "FDICIA after Five Years," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 139-158, Summer.
    16. Joe Peek & Eric Rosengren, 1997. "How well capitalized are well-capitalized banks?," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 41-50.
    17. David VanHoose, 2007. "Market Discipline and Supervisory Discretion in Banking: Reinforcing or Conflicting Pillars of Basel II?," NFI Working Papers 2007-WP-06, Indiana State University, Scott College of Business, Networks Financial Institute.
    18. Cebula, Richard, 1992. "The Impact of Federal Deposit Insurance on Savings and Loan Failures," MPRA Paper 51540, University Library of Munich, Germany.
    19. Vittas, Dimitri & Demirguc-Kunt, Asli & Musalem, Alberto, 1993. "North American free trade agreement : issues on trade in financial services for Mexico," Policy Research Working Paper Series 1153, The World Bank.
    20. Elijah Brewer III & Thomas H. Mondschean & Philip Strahan, 1996. "The Role of Monitoring in Reducing the Moral Hazard Problem Associated with Government Guarantees: Evidence from the Life Insurance Industry," Center for Financial Institutions Working Papers 96-15, Wharton School Center for Financial Institutions, University of Pennsylvania.

    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:taf:apfiec:v:7:y:1997:i:6:p:695-701. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAFE20 .

    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.