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Journal Article
Bank examination classifications and loan risk
Journal Article
Kansas banking in the 1930s: the deposit insurance choice and implications for public policy
The recent financial crisis reopened debate about how much public assistance to give to distressed financial institutions. Some argue that even traditional assistance in the form of federal deposit insurance can create moral hazard problems, leading banks to take on greater risk once they are insured. ; Authors Spong and Regehr take a look at a unique situation in Kansas among state-chartered banks, in the wake of the 1930s banking crisis, that affords a rare opportunity to compare insured banks with uninsured ones. After the introduction of federal deposit insurance in 1934, a significant ...
Journal Article
Bank profits in a changing environment
Journal Article
Financial stability reports: how useful during a financial crisis?
Many of the origins of the recent financial crisis were in the United States, beginning with subprime mortgages and mortgage securities. As the crisis spread globally, few market participants or regulatory authorities saw it coming and all underestimated its severity. ; In the United States, the crisis has sparked many proposals to address its perceived causes and prevent a recurrence. One approach already used in many other countries is publishing financial stability reports. These reports review the condition of the financial system, identify and assess risks to the system, and suggest ...
Journal Article
What makes a bank efficient? : a look at financial characteristics and management and ownership structure
Increased competition, new technology, and bank consolidation are reinforcing the need for banks to operate efficiently. Moreover, recent research on banking efficiency shows that there is much room for reducing expenses and making better use of bank resources. This article compares the financial characteristics, as well as the management and ownership structure, of a sample of efficient and inefficient banks from the Tenth Federal Reserve District. The comparison reveals a number of factors that contribute to bank efficiency. ; Efficient banks control all aspects of costs, yet deliver bank ...
Journal Article
The relationship between loan classifications and losses : the effects of a changing economy
The agriculture and energy sectors suffered dramatic declines during the 1980s in the Tenth Federal Reserve District. Bank asset quality also declined during this time period, particularly for farm banks. Using information on loan classifications and charge-offs, this study traces classified loans over time to determine their subsequent performance. ; This study found that examiners were able to identify a majority of the problem credits prior to charge-off. Additionally, examiners were able to distinguish the relative riskiness of problem credits. Economic conditions were found to have a ...
Journal Article
Interstate bank expansion: a comparison across individual states
Monograph
Banking regulation : its purpose, implementation, and effects
4th edition
Journal Article
Industrial loan companies: a growing industry sparks a public policy debate
Industrial loan companies, or ILCs, are a small, but rapidly growing part of the financial industry. These state-chartered institutions operate in seven states and have nearly all of the same powers as commercial banks. However, ILCs differ greatly from banks in one characteristic--the type of companies that may own them. ILCs meeting certain conditions may be owned and operated by firms engaged in commercial activities, thus skirting the prohibitions on mixing banking and commerce that apply to virtually all other depository institutions. ; From a public policy standpoint, the proponents of ...