The present study examines state-level banking-industry specific as well as region economic determinants of non-performing loans for all commercial banks and savings institutions across 50 US states and the District of Columbia for 1984–2013. Using both fixed effects and dynamic-GMM estimations, I find greater capitalization, liquidity risks, poor credit quality, greater cost inefficiency and b...

An important factor in the stable functioning of banking sector is quality bank liabilities. The financial position each credit institution, its liquidity, stability and efficiency, directly depend on state resource base (the composition sources financing activities, parameters their urgency payment), therefore task ensuring optimal structure liabilities one key tasks management. In conditions ...

authors thank Peggy Gilligan for providing valuable research assistance. L ending to small firms traditionally has been a business served primarily by the banking industry. Banks have specialized in assessing and monitoring borrowers, particularly companies too small to access the bond and equity markets directly. In addition, because banks provide a variety of transactions services such as che...

After the revolution of 1979, all of the private banks existing in Iran were nationalized and the economic system was based on public, cooperative and private sectors and banking operations were categorized in public sector. Consequently, private sector and foreign banks were bared from doing banking operations in Iran. According to the recent laws and regulations passed in Iran, the Irani...

We analyze asset-backed commercial paper conduits which played a central role in the early phase of the financial crisis of 2007-09. We document that commercial banks set up conduits to securitize assets while insuring the newly securitized assets using credit guarantees. The credit guarantees were structured to reduce bank capital requirements, while providing recourse to bank balance sheets f...

Private information about prospective borrowers produced by a bank can affect rival lenders due to a "winner’s curse" effect. Strategic interaction between banks with respect to the intensity of costly information production results in endogenous credit cycles, periodic "credit crunches." Empirical tests are constructed based on parameterizing public information about relative bank performance ...

This Economic Letter presents newly produced data on losses in the federal insurance program for credit union shares and on the rates at which federally insured credit unions (FICUs) failed. (Shares in credit unions are analogous to deposits in banks.) We compare these data to data for institutions insured by the Bank Insurance Fund (BIF) of the Federal Deposit Insurance Corporation (FDIC).We a...