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Bank Failure Risk: Different Now?

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  • Sherrill Shaffer

Abstract

Motivated by the debate over similarities between the current and previous financial crises, logit estimates reveal significantly changed linkages between observable financial ratios and probabilities of subsequent bank failure using U.S. data from the 1980s and 2008.

Suggested Citation

  • Sherrill Shaffer, 2012. "Bank Failure Risk: Different Now?," CAMA Working Papers 2012-23, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2012-23
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    References listed on IDEAS

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    1. Cole, Rebel A. & Gunther, Jeffery W., 1995. "Separating the likelihood and timing of bank failure," Journal of Banking & Finance, Elsevier, vol. 19(6), pages 1073-1089, September.
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    10. Arena, Marco, 2008. "Bank failures and bank fundamentals: A comparative analysis of Latin America and East Asia during the nineties using bank-level data," Journal of Banking & Finance, Elsevier, vol. 32(2), pages 299-310, February.
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    16. Reinhart, Carmen & Reinhart, Vincent, 2008. "Is the US too big to fail?," MPRA Paper 12976, University Library of Munich, Germany.
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    Cited by:

    1. Qiongbing Wu & Rebel A. Cole, 2024. "Macroeconomic conditions and bank failure," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 43(5), pages 1212-1234, August.
    2. Gerhard Hambusch & Sherrill Shaffer, 2012. "Forecasting Bank Leverage," Working Paper Series 176, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    3. Banerjee, Ameet Kumar & Pradhan, H.K. & Sensoy, Ahmet & Goodell, John W., 2024. "Assessing the US financial sector post three bank collapses: Signals from fintech and financial sector ETFs," International Review of Financial Analysis, Elsevier, vol. 91(C).
    4. Evžen Kočenda & Ichiro Iwasaki, 2022. "Bank survival around the world: A meta‐analytic review," Journal of Economic Surveys, Wiley Blackwell, vol. 36(1), pages 108-156, February.
    5. Doug Dyer & Majdi Quttainah & Pengfei Ye, 2015. "Privatization, intermediation and performance: global evidence," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 207-229, December.
    6. Chernykh, Lucy & Cole, Rebel A., 2015. "How should we measure bank capital adequacy for triggering Prompt Corrective Action? A (simple) proposal," Journal of Financial Stability, Elsevier, vol. 20(C), pages 131-143.
    7. Dong Jin Shin & Brian H.S. Kim, 2017. "Impacts of household loan regulation on financial stability: evidence from Korea," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 31(1), pages 53-65, May.
    8. Felix Noth & Lena Tonzer, 2017. "Bank risk proxies and the crisis of 2007/09: a comparison," Applied Economics Letters, Taylor & Francis Journals, vol. 24(7), pages 498-501, April.
    9. Gerhard Hambusch & Sherrill Shaffer, 2016. "Forecasting bank leverage: an alternative to regulatory early warning models," Journal of Regulatory Economics, Springer, vol. 50(1), pages 38-69, August.
    10. Iwanicz-Drozdowska, Małgorzata & Witkowski, Bartosz, 2022. "Regulation and supervision of the European banking industry. Does one size fit all?," Journal of Policy Modeling, Elsevier, vol. 44(1), pages 113-129.
    11. Krause, Thomas & Sondershaus, Talina & Tonzer, Lena, 2017. "Complexity and bank risk during the financial crisis," Economics Letters, Elsevier, vol. 150(C), pages 118-121.
    12. Cebula, Richard J. & Xu, Jiay, 2023. "A Brief Survey of Recent Studies of Bank Failures in the U.S," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 76(2), pages 265-274.

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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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