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Underlying determinants of closed-bank resolution costs

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Listed:
  • William P. Osterberg
  • James B. Thomson

Abstract

An analysis of the issues surrounding bank resolution costs, looking at failures from 1986 to 1992 and including proxies for fraud, off-balance-sheet risk, brokered deposits, and both regional and size effects. Evidence suggests there was a significant lag between the realization and recognition of losses on bank assets, and that regulators may have practiced forbearance.

Suggested Citation

  • William P. Osterberg & James B. Thomson, 1994. "Underlying determinants of closed-bank resolution costs," Working Papers (Old Series) 9403, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9403
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    References listed on IDEAS

    as
    1. 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.
    2. Fred C. Graham & James E. Horner, 1988. "Bank failure: an evaluation of the factors contributing to the failure of national banks," Proceedings 210, Federal Reserve Bank of Chicago.
    3. Avery, Robert B. & Berger, Allen N., 1991. "Loan commitments and bank risk exposure," Journal of Banking & Finance, Elsevier, vol. 15(1), pages 173-192, February.
    4. Christopher J. Pike & James B. Thomson, 1992. "FDICIA's prompt corrective action provisions," Economic Commentary, Federal Reserve Bank of Cleveland, issue Sep.
    5. Asli Demirgüč-Kunt, 1989. "Deposit-institution failures: a review of empirical literature," Economic Review, Federal Reserve Bank of Cleveland, vol. 25(Q IV), pages 2-18.
    6. Keeley, Michael C, 1990. "Deposit Insurance, Risk, and Market Power in Banking," American Economic Review, American Economic Association, vol. 80(5), pages 1183-1200, December.
    7. Kane, Edward J, 1990. "Principal-Agent Problems in S&L Salvage," Journal of Finance, American Finance Association, vol. 45(3), pages 755-764, July.
    8. Boot, Arnoud W. A. & Thakor, Anjan V., 1991. "Off-balance sheet liabilities, deposit insurance and capital regulation," Journal of Banking & Finance, Elsevier, vol. 15(4-5), pages 825-846, September.
    9. Buser, Stephen A & Chen, Andrew H & Kane, Edward J, 1981. "Federal Deposit Insurance, Regulatory Policy, and Optimal Bank Capital," Journal of Finance, American Finance Association, vol. 36(1), pages 51-60, March.
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    13. Allen, Linda & Saunders, Anthony, 1993. "Forbearance and valuation of deposit insurance as a callable put," Journal of Banking & Finance, Elsevier, vol. 17(4), pages 629-643, June.
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    Cited by:

    1. Klaus Schaeck, 2008. "Bank Liability Structure, FDIC Loss, and Time to Failure: A Quantile Regression Approach," Journal of Financial Services Research, Springer;Western Finance Association, vol. 33(3), pages 163-179, June.
    2. William P. Osterberg & James B. Thomson, 1997. "Depositor preference legislation and failed banks' resolution costs," Working Papers (Old Series) 9715, Federal Reserve Bank of Cleveland.

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