Is the southwest lending boom too much of a good thing?
Performance of eleventh district banks in 1989: progress but not profits
Commercial banks in the Eleventh Federal Reserve District reduced their losses substantially in 1989 but still collectively reported a loss for the year. The improvement primarily resulted from increases in fee income. In addition, Eleventh District banks reduced their nonperforming loans and the costs associated with these loans. Despite the improvement, District banks still have relatively large holdings of nonperforming loans and repossessed real estate. ; Balance sheets of Eleventh District banks show the effects of correcting the problems of low-quality assets. Charging off nonperforming ...
Daylight overdrafts: who really bears the risk?
Six causes of the credit crunch
Bank lending typically moves with the business cycle. In Texas from 1987 to 1992, however, bank loans declined while nonagricultural employment rose. Robert T. Clair and Paula Tucker consider this evidence of a constrained supply of bank loans, or credit crunch. ; Clair and Tucker find that multiple factors have reduced banks' willingness and ability to supply loans. The resolution of failed banks and thrifts, tightening of bank examination standards, new capital requirements, new regulations and increased enforcement of old regulations, and increased exposure to lawsuits have each had an ...
Loan growth and loan quality: some preliminary evidence from Texas banks
Following the failures of depository institutions in the 1980s, many analysts concluded that the rapid growth of lending activity and the deterioration of loan quality were related. Robert T. Clair tests this relationship after separating loan growth by its source: increased lending to new or existing customers, bank mergers, and acquisitions of failed banks. The preliminary evidence suggests that additional lending to new or existing customers beyond what might be normal at a given stage of the business cycle lowers loan quality after a three-year lag. This relationship, based on evidence ...
Risky business: clearing checks during banking crises
A region-by-region look at U.S. banking
Branch banking in Texas: implications for bank structure