Journal Article

Why were banks better off in the 2001 recession?

Abstract: In a sharp turnaround from their fortunes in the 1990-91 recession, banks came through the 2001 recession reasonably well. A look at industry and economy-wide developments in the intervening years suggests that banks fared better largely because of more effective risk management. In addition, they benefited from a decline in short-term interest rates and the relative mildness of the 2001 downturn.

Keywords: Risk management; Interest rates; Recessions; Bank profits;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Current Issues in Economics and Finance

Publication Date: 2004

Volume: 10

Issue: Jan

Order Number: 1