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Discussion Paper

The Empirical Relationship Between the Tier 1 Leverage Ratio and Community Bank Failures after the Global Financial Crisis


Abstract: This note uses a logistic regression to model community bank failures in the period from 2008 to 2012 and estimates how the probability of bank failure depends on the tier 1 leverage ratio. Over this five-year period, about 5.4% of the 7,184 U.S. community banks failed.

https://doi.org/10.17016/2380-7172.3929

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2025-12-15

Number: 2025-12-15