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Why strong banks fail

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  • Ozili, Peterson K

Abstract

Many bank failures have occurred in history. The lessons learnt from past bank failures remind us that any bank can fail and they fail for different reasons. The first step to avoid the failure of a strong bank is to identify the factors that cause the failure of a strong bank. This paper focus on strong banks and identifies the reasons why strong banks might fail. The reasons why a strong bank might fail are numerous. The insights offered in the article can help existing banks to avoid a bank failure in the future. The insights offered in the article has financial stability implications which needs to be taken seriously.

Suggested Citation

  • Ozili, Peterson K, 2023. "Why strong banks fail," MPRA Paper 116984, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116984
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    File URL: https://mpra.ub.uni-muenchen.de/116984/1/MPRA_paper_116984.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Bank failure; bank stability; financial crisis; capital adequacy; financial stability;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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