American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Are Banks Really Special? New Evidence from the FDIC-Induced Failure of Healthy Banks
American Economic Review
vol. 95,
no. 5, December 2005
(pp. 1712–1730)
Abstract
Recent bank failures are followed by significant and permanent negative declines in real county income. These declines are larger for small failures than for large failures per dollar of assets, are larger for bank failures than thrift failures, and are larger for bank closures than assisted mergers. More interestingly, the failure of even healthy banks has significant and permanent negative effects on economic activity.Citation
Ashcraft, Adam, B. 2005. "Are Banks Really Special? New Evidence from the FDIC-Induced Failure of Healthy Banks." American Economic Review, 95 (5): 1712–1730. DOI: 10.1257/000282805775014326Additional Materials
JEL Classification
- G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- G28 Financial Institutions and Services: Government Policy and Regulation
- G33 Bankruptcy; Liquidation