Commercial bank failures during The Great Recession: the real (estate) story

Adonis Antoniades

No 530, BIS Working Papers from Bank for International Settlements

Abstract: The primary driver of commercial bank failures during the Great Recession was exposure to the real estate sector, not aggregate funding strains. The main "toxic" exposure was credit to non-household real estate borrowers, not traditional home mortgages or agency MBS. Private-label MBS contributed to the failure of large banks only. Failed banks skewed their portfolios towards product categories that performed poorly on aggregate. In addition, within each product category they held assets of lower quality than those held by survivor banks.

Keywords: bank failures; Great Recession; real estate; mortgage-backed securities; credit lines; credit growth (search for similar items in EconPapers)
Pages: 49 pages
Date: 2015-11
New Economics Papers: this item is included in nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Commercial bank failures during the Great Recession: the real (estate) story (2015)
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