Déjà vu all over again: The causes of U.S. commercial bank failures this time around

Rebel Cole and Lawrence White

MPRA Paper from University Library of Munich, Germany

Abstract: In this study, we analyze why U.S. commercial banks failed during the recent financial crisis. We find that proxies for commercial real estate investments, as well as traditional proxies for the CAMELS components, do an excellent job in explaining the failures of banks that were closed during 2009, just as they did in the previous banking crisis of 1985 – 1992. Surprisingly, we do not find that residential mortgage-backed securities played a significant role in determining which banks failed and which banks survived.

Keywords: bank; bank failure; CAMELS; commercial real estate; construction; FDIC; financial crisis; mortgage-backed security; residential mortgage; residential real estate (search for similar items in EconPapers)
JEL-codes: G18 G21 G28 (search for similar items in EconPapers)
Date: 2010-07-28, Revised 2010-07-28
New Economics Papers: this item is included in nep-ban and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://mpra.ub.uni-muenchen.de/24690/1/MPRA_paper_24690.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/29181/2/MPRA_paper_29181.pdf revised version (application/pdf)

Related works:
Journal Article: Déjà Vu All Over Again: The Causes of U.S. Commercial Bank Failures This Time Around (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:24690

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