Factors related to the failure of FDIC-insured US banks

What is it about?

This study includes an analysis of failure determinants during pre-crisis, crisis, and post-crisis subperiods based on the FDIC monitoring system of bank failures and identifies what ratios are more relevant during each period and how they change from period to period. The ratios change from period to period, but they measure the same financial areas of concern in different contexts: liquidity, leverage, and capital adequacy. Risk based capital ratios are not effective predictors of bank failures.

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