{"title":"Resolution Costs and the Business Cycle","authors":"Kathleen Mcdill","doi":"10.2139/ssrn.886700","DOIUrl":"https://doi.org/10.2139/ssrn.886700","url":null,"abstract":"There are a number of factors that may contribute to the cost of resolving a failed bank. In this paper we study the behavior of the costs of resolving a failed bank as those costs change over the business cycle. We find evidence that the costs are related to the state of the business cycle. Both the contraction and the expansion that preceded it appear to be important in explaining the loss that the FDIC experiences when a bank fails. In addition, a number of other bank-specific variables appear to be linked to loss rates for a failed institution.","PeriodicalId":397288,"journal":{"name":"FDIC Center for Financial Research Working Paper Series","volume":"97 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2004-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122665986","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Contribution of Economic Data to Bank-Failure Models","authors":"Daniel A. Nuxoll","doi":"10.2139/ssrn.886682","DOIUrl":"https://doi.org/10.2139/ssrn.886682","url":null,"abstract":"The wave of bank failures during the late 1980s and early 1990s was caused in part by a series of regional recessions. This paper examines whether the FDIC can use state-level economic data to forecast bank failures and finds that these data do not improve models that use only bank-level data. The paper also proposes a number of explanations for the lack of improvement.","PeriodicalId":397288,"journal":{"name":"FDIC Center for Financial Research Working Paper Series","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2003-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134135164","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}