Colorado College Logo

  DigitalCC

Use AND (in capitals) to search multiple keywords.
Example: harmonica AND cobos

Assessing the probability of bank failure : a snapshot of banks regulated by the Federal Deposit Insurance Corporation from 1998–1999 and 2001–2002

by Scherer, Madeline Delaney

Abstract

The Federal Deposit Insurance Corporation (FDIC) was created in 1933. Today, the FDIC’s presence and monitoring ensures that banks are and remain solvent. Although the FDIC does everything in its power to prevent a bank from failing, bank failure can still occur, even in times of relative economic stability. Using a Probit regression analysis, this study assesses the probability of bank failure by looking at 102 different banks, eight different financial variables, and six geographic region variables during the time periods of 1998–1999 and 2001–2002. The geographic location variable is used to investigate if failures occur more often in certain regions of the country or in more urban or rural areas. In the end, none of the financial variables were statistically significant, whereas the regional geographic variables were. This suggests that during a period of relative economic stability, regional economic conditions affect bank failures more so than financial variables.

Note

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Includes bibliographical references.

Colorado College Honor Code upheld.

Administrative Notes

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Colorado College Honor Code upheld.

Copyright
Copyright restrictions apply.
Publisher
Colorado College
PID
coccc:9295
Digital Origin
born digital
Extent
49 pages : illustrations (some color)
Thesis
Senior Thesis -- Colorado College
Thesis Advisor
Redmount, Esther
Department/Program
Economics and Business
Degree Name
bachelor
Degree Type
B.A.
Degree Grantor
Colorado College
Date Issued
2014-05