search query: @indexterm REVIEWS / total: 67
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| Author: | Akhigbe, A. Madura, J. |
| Title: | Why do contagion effects vary among bank failures? |
| Journal: | Journal of Banking and Finance
2001 : APR, VOL. 25:4, p. 657-680 |
| Index terms: | BANKS BANK FAILURES REVIEWS |
| Language: | eng |
| Abstract: | The authors assess 99 publicized bank failures over the 1980-1996 period, and find that contagion effects exist in general for the surviving rivals of the failed bank. The degree of contagion effects varies over time (among bank failures), and is stronger when the failed bank is a multibank holding company, when the failed bank is publicly held, when the failed bank is relatively large, when the rivals are relatively small, and when the rivals have relatively low capital levels. The contagion effects are less pronounced in the period following the passage of FIRREA. The results suggest that a bank's exposure to possible contagion effects due to a bank failure can be partially controlled by a bank's managerial policies and by regulatory policies. |
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