Abstract

This study examines determinants of bank failures in the US over the 1963–91 period. The results indicate that the bank failure rate is an increasing function of the degree of federal deposit insurance coverage, increased competition in financial services, and the real cost of deposits, and a decreasing function of the capital/asset ratio, the real interest rate yield on three-year Treasury notes, and real GDP growth.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call