Do internal markets influence bank failures?

Document Type

Article

Publication Date

5-4-2018

Abstract

Empirical studies analysing the determinants of bank failures ignore the role of bank holding company affiliation in these failures. In this article, we propose a new approach of estimating affiliated banks’ failures that incorporates holding companies’ role in failures. Our logit regression results show that the holding company’s features, especially internal flows, mattered on failures more than those of the banks during the sub-prime mortgage crisis.

Publication Title

Applied Economics Letters

Volume

25

Issue

8

First Page

567

Last Page

570

Digital Object Identifier (DOI)

10.1080/13504851.2017.1346355

ISSN

13504851

E-ISSN

14664291

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