Factors Affecting Regional Bank Health and Supervisory Rating: An Exploration

RePEc Short ID: pha107
ORCID iD: 0000-0001-9138-2806

Duffy, Denise; Haubrich, Joseph G.; Healy, Christopher

doi:10.26509/frbc-wp-202602

Working Paper

Factors Affecting Regional Bank Health and Supervisory Rating: An Exploration

Abstract: Local commercial real estate conditions are positively correlated with the health of regional banks (assets between $10 billion and $100 billion), as measured by the composite confidential supervisory rating. Among other variables, return on assets is positively correlated with our proxy of bank health, but size and capital ratio are negatively correlated. Among the different components of the rating, the management rating has the most influence on the composite rating.

JEL Classification: G21; G28; R30;

https://doi.org/10.26509/frbc-wp-202602