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A Brief Survey of Recent Studies of Bank Failures in the U.S

Author

Listed:
  • Cebula, Richard J.

    (George Mason University, Fairfax, Virginia, USA)

  • Xu, Jiay

    (Mount St. Joseph University, Cincinnati, Ohio, USA)

Abstract
This study provides a brief review of several recently published papers that attempt to identify factors that have influenced the failure rate of commercial banks in the U.S. In the effort to provide more useful/contemporary insights, the focus is on studies of bank failures published in the year 2000 and thereafter. Most of the studies emphasize micro-level causal factors, although certain studies direct attention to macro-level analysis. Moreover, there is an effort, albeit only modest, to identify factors affecting the bank failure rate of minority-owned banks; this fact suggests an arguably useful emphasis for future research. Una breve rassegna di recenti ricerche sui fallimenti bancari negli Stati Uniti Questo articolo presenta una breve rassegna di recenti studi sui fattori che hanno influenzato il tasso di fallimento delle banche commerciali negli USA. Nel tentativo di fornire spunti più utili ed attuali, l’articolo prende in considerazione solo studi pubblicati a partire dal 2000. La maggior parte degli studi enfatizza fattori causali a livello microeconomico, ci sono, tuttavia, anche studi che pongono l’attenzione sugli aspetti macroeconomici. Si riscontra il tentativo, seppur modesto, di identificare fattori che influenzano il tasso di fallimento bancario di istituti controllati da minoranze etniche, il che rappresenta un interessante ed utile spunto per ricerche future.

Suggested Citation

  • 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.
    • Handle: RePEc:ris:ecoint:0945
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    References listed on IDEAS

    as
    1. Wenling Lu & David A. Whidbee, 2013. "Bank structure and failure during the financial crisis," Journal of Financial Economic Policy, Emerald Group Publishing, vol. 5(3), pages 281-299, June.
    2. Wenling Lu & David A. Whidbee, 2013. "Bank structure and failure during the financial crisis," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 5(3), pages 281-299, July.
    3. Shaffer, Sherrill, 2012. "Bank failure risk: Different now?," Economics Letters, Elsevier, vol. 116(3), pages 613-616.
    4. Richard Cebula, 2010. "Determinants of bank failures in the US revisited," Applied Economics Letters, Taylor & Francis Journals, vol. 17(13), pages 1313-1317.
    5. Rebel Cole & Lawrence White, 2012. "Déjà Vu All Over Again: The Causes of U.S. Commercial Bank Failures This Time Around," Journal of Financial Services Research, Springer;Western Finance Association, vol. 42(1), pages 5-29, October.
    6. Raymond A. K. Cox & Randall K. Kimmel & Grace W.Y. Wang, 2017. "Proportional Hazards Model of Bank Failure: Evidence from USA," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 5(3), pages 35-45, June.
    7. Raymond A.K. Cox & Grace W.-Y. Wang, 2014. "Predicting the US bank failure: A discriminant analysis," Economic Analysis and Policy, Elsevier, vol. 44(2), pages 202-211.
    8. Richard J. Cebula & Wendy Gillis & S. Cathy McCrary & Don Capener, 2016. "New evidence on the impact of economic conditions and banking legislation on the bank failure rate in the US, 1970 to 2014," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 8(3), pages 364-376, August.
    9. Richard J. Cebula & Wendy Gillis & S. Cathy McCrary & Don Capener, 2016. "New evidence on the impact of economic conditions and banking legislation on the bank failure rate in the US, 1970 to 2014," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 8(3), pages 364-376, August.
    10. Rockoff, Hugh, 2021. "Oh, How the Mighty Have Fallen: The Bank Failures and Near Failures That Started America’s Greatest Financial Panics," The Journal of Economic History, Cambridge University Press, vol. 81(2), pages 331-358, June.
    11. Saleem Bahaj & Frederic Malherbe, 2020. "The Forced Safety Effect: How Higher Capital Requirements Can Increase Bank Lending," Journal of Finance, American Finance Association, vol. 75(6), pages 3013-3053, December.
    12. Russell Kashian & Robert Drago, 2017. "Minority-Owned Banks and Bank Failures After the Financial Collapse," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(1), pages 5-36, February.
    13. David C. Wheelock & Paul W. Wilson, 2000. "Why do Banks Disappear? The Determinants of U.S. Bank Failures and Acquisitions," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 127-138, February.
    14. Wenling Lu & David A. Whidbee, 2013. "Bank structure and failure during the financial crisis," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 5(3), pages 281-299, July.
    15. Wenling Lu & David A. Whidbee, 2016. "US bank failure and bailout during the financial crisis," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 8(3), pages 316-347, August.
    16. Carmona, Pedro & Climent, Francisco & Momparler, Alexandre, 2019. "Predicting failure in the U.S. banking sector: An extreme gradient boosting approach," International Review of Economics & Finance, Elsevier, vol. 61(C), pages 304-323.
    17. Guo Li & Lee Sanning & Sherrill Shaffer, 2011. "Forecasting bank failures: timeliness versus number of failures," Applied Economics Letters, Taylor & Francis Journals, vol. 18(16), pages 1549-1552.
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    More about this item

    Keywords

    Banking; Bank Failures; U.S. Banks; Bank Financial Ratios; Balance Sheet Data;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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