Federal deposit insurance coverage and bank failures: A cointegration analysis with semi-annual data, 1965–91

1997 ◽  
Vol 21 (3) ◽  
pp. 3-9 ◽  
Author(s):  
Ira Saltz
Keyword(s):  
Deposit Insurance ◽  
Insurance Coverage ◽  
Cointegration Analysis ◽  
Bank Failures ◽  
Annual Data ◽  
Federal Deposit Insurance

Factors related to the failure of FDIC-insured US banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mario Jordi Maura-Pérez ◽  
Herminio Romero-Perez
Keyword(s):  
Deposit Insurance ◽  
Capital Adequacy ◽  
Bank Failures ◽  
Main Hypothesis ◽  
Content Type ◽  
Explanatory Factors ◽  
Selection Strategies ◽  
Capital Ratios ◽  
The 2008 Financial Crisis ◽  
Federal Deposit Insurance

Purpose This study aims to analyze the factors related to the failure of 535 Federal Deposit Insurance Corporation (FDIC)-Insured United States banks in conjunction with the 2008 financial crisis. Design/methodology/approach The research consists of an analysis of the following three five-year partitions: pre-crisis (2002–2006), crisis (2007–2011) and post-crisis (2012–2016). The main hypothesis is that the factors explaining bank failures vary by period. Using logistic regression analysis, the authors identify the desirable models by period based on three model selection strategies. Findings Liquidity and non-risk-based capital ratios are important explanatory factors in all three periods. As the authors can see from the results, when comparing the full period (2002–2016) and the three five-year period partitions (2002–2006, 2007–2011 and 2012–2016), the ratios change from period to period, but they measure the same financial areas of concern in different contexts as follows: liquidity, leverage/risk exposure and capital adequacy. Risk-based capital ratios are not effective predictors of bank failures. Originality/value Recent academic studies have analyzed bank failures during periods that cover the years before, during and after the crisis, but most of these studies discuss bank failures in the forecasting context only. 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.

scholarly journals Bondholder reorganization of systemically important financial institutions

2018 ◽  
Vol 10 (2) ◽  
pp. 281-289 ◽  
Author(s):  
Steven D. Gjerstad
Keyword(s):  
Deposit Insurance ◽  
Financial Institution ◽  
Balance Sheet ◽  
Bank Failures ◽  
Content Type ◽  
Balance Sheets ◽  
Financial Firms ◽  
Resolution Process ◽  
Almost All ◽  
Federal Deposit Insurance

Purpose This paper aims to describe a resolution process for faltering financial firms that quickly allocates losses to bondholders and transfers ownership of the firm to them. This process overcomes the most serious flaws in resolution plans submitted by banks under Dodd–Frank Title I and in the Federal Deposit Insurance Corporation (FDIC) receivership procedure in Dodd–Frank Title II by restoring the balance sheet of a failing financial institution and immediately replacing the management and board of directors who allowed its demise. Design/methodology/approach Feasibility of the proposed resolution procedure is assessed by comparing long-term bonds outstanding for the largest American banks just before the 2008 crisis to the capital needed by these banks to restore their balance sheets after their losses prior to and during the crisis. Findings In almost all bank failures, this process would eliminate the need for government involvement beyond court certification of the reorganization. The procedure overcomes the serious incentive distortions and inefficiencies created by bailouts, and avoids the destruction of value and financial market turmoil that would result from the bankruptcies and liquidations that Dodd–Frank requires for distressed and failing banks. Originality/value Title II of the Dodd–Frank Act would require liquidation of any banks that enter into its resolution process. The case of Lehman Brothers indicates the severity of losses to investors that liquidation imposes and the disruption to financial markets and the economy. The procedure developed in this paper would avoid the disruptions that Dodd–Frank requires, preserving core functions of faltering financial firms and maintaining them as going concerns, even in a severe financial crisis.

The Nexus between Financial Development and Human Development: The Case of Developing Countries

2020 ◽  
Vol 8 (2) ◽  
pp. 68
Author(s):  
Bilgehan Tekin
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Human Development ◽  
Financial Development ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Causality Analysis ◽  
Development Index ◽  
Development Levels ◽  
The Relationship

The purpose of this study to examine the relationship between financial development and human development in the health and welfare dimensions of developing countries. This study aims to determine whether the financial developments of the countries have an effect on the basic human development of the individuals and whether human development indicators have an impact on financial development. In this study, the relationship between financial development and human development has been tried to be revealed by using data obtained from developing countries. Financial development levels of the countries were measured with the developed financial development index. The index is calculated by using M3 / GDP, private sector loans / GDP and loans to banks from private sector / GDP ratios. The human development index is calculated by considering various health indicators and GNP per capita. The data includes annual data for the period 1970-2016. Pedroni and Kao cointegration analysis and Dumitrescu & Hurlin panel causality analysis were performed in the study. According to the results of the study, the cointegration relationship was determined between the two variables. There is also a two-way causality between the variables.

KOINTEGRASI EKSPOR IMPOR INDONESIA, 1970 - 2013

2014 ◽  
Vol 8 (2) ◽  
pp. 229-246
Author(s):  
Azis Muslim
Keyword(s):  
Structural Break ◽  
Trade Deficit ◽  
Budget Constraint ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Short Term ◽  
Data Period

Penelitian ini bertujuan untuk mengetahui apakah terdapat kointegrasi antara ekspor dan impor di Indonesia. Metode yang digunakan dalam penelitian ini adalah Uji Kointegrasi Gregory-Hansen dengan pertimbangan adanya structural break berdasarkan pada data tahunan ekspor impor Indonesia dari tahun 1970 sampai dengan 2013. Hasil penelitian memperlihatkan bahwa tidak terjadi kointegrasi antara ekspor dan impor. Hal ini berarti bahwa Indonesia menghadapi masalah neraca pembayaran, serta defisit perdagangan yang terjadi bukan merupakan fenomena jangka pendek. This research aims to investigate empirically the existence of Indonesian export import cointegration. This Research used the Gregory-Hansen cointegration analysis due to structural break based on Indonesia Export import annual data (period of 1970-2013 ). The results showed that there is no-cointegration of Indonesia export and import which means that Indonesia is facing international budget constraint and trade deficit isn’t a short term phenomenon.

(A Study on Deposit Insurance Coverage and Market Discipline)

2017 ◽  
Author(s):  
Jinho Lee ◽  
Hyunjae Jung ◽  
Kang Baek ◽  
Young Seog Park
Keyword(s):  
Deposit Insurance ◽  
Insurance Coverage ◽  
Market Discipline

Federal Deposit Insurance, Regulatory Policy, and Optimal Bank Capital

1981 ◽  
Vol 36 (1) ◽  
pp. 51 ◽  
Author(s):  
Stephen A. Buser ◽  
Andrew H. Chen ◽  
Edward J. Kane
Keyword(s):  
Deposit Insurance ◽  
Regulatory Policy ◽  
Bank Capital ◽  
Federal Deposit Insurance
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