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Working Paper
Separating the likelihood and timing of bank failure
Report
A Lender for Tough Times
Community banks are not only a major source of credit, but also a stable one for businesses. During the recent financial crisis and its aftermath, these smaller, traditional lenders provided credit to many firms, especially small businesses, when they needed it most.
Working Paper
Adverse selection and competing deposit insurance systems in pre-depression Texas
In 1910, Texas instituted a highly unique deposit insurance program for its state chartered banks consisting of two separate plans: the depositors guaranty fund, similar in operation to the deposit insurance schemes adopted in several other states; and the depositors bond security system, which required the procurement of a privately issued insurance policy. We hypothesize that the provision of a choice in funds led to risk-sorting among the banks, with the relatively conservative institutions opting for the comparatively rigorous bond security system. Employing a probit model with ...
Journal Article
Redlining or red herring?
Journal Article
Taming the credit cycle by limiting high-risk lending
Reformers should review the loan-to-value guidelines for real estate lending, toughen them up where necessary and, most important, put the force of law behind them.
Working Paper
Separating the likelihood and timing of bank failure