Bank failures have contributed to the decline in the number of banks. another major reason is the

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journal article

The Failure of the Bank of United States, 1930: Note

Journal of Money, Credit and Banking

Vol. 24, No. 3 (Aug., 1992)

, pp. 384-399 (16 pages)

Published By: Ohio State University Press

https://doi.org/10.2307/1992725

https://www.jstor.org/stable/1992725

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Journal Information

Founded in 1969, the Journal of Money, Credit and Banking (JMCB) is a leading professional journal read and referred to by scholars, researchers, and policymakers in the areas of money and banking, credit markets, regulation of financial institutions, international payments, portfolio management, and monetary and fiscal policy. The JMCB represents a wide spectrum of viewpoints and specializations in its fields through its advisory board, associate editors, and referees from academic, financial, and governmental institutions around the world.

Publisher Information

The Ohio State University Press was established in 1957 and currently publishes 50-60 new books a year. We specialize in literary and cultural studies, (including comics, narrative theory, Victorian studies, and medieval studies) American studies, rhetoric and communication, gender and sexuality studies, and race and ethnic studies (including Black studies and Latinx studies). We also acquire books in regional studies on our Trillium imprint, creative works, on our Mad Creek imprint, and linguistics. In addition to its books, the Press publishes a distinguished group of journals including Inks, the journal of the Comics Studies Society, American Periodicals, Victorians, North American Journal of Celtic Studies, and Narrative.

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Journal of Money, Credit and Banking © 1992 Ohio State University Press
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journal article

Why Do Banks Disappear? The Determinants of U.S. Bank Failures and Acquisitions

The Review of Economics and Statistics

Vol. 82, No. 1 (Feb., 2000)

, pp. 127-138 (12 pages)

Published By: The MIT Press

https://www.jstor.org/stable/2646678

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Abstract

This paper seeks to identify the characteristics that make individual U.S. banks more likely to fail or be acquired. We use bank-specific information to estimate competing-risks hazard models with time-varying covariates. We use alternative measures of productive efficiency to proxy management quality, and find that inefficiency increases the risk of failure while reducing the probability of a bank's being acquired. Finally, we show that the closer to insolvency a bank is (as reflected by a low equity-to-assets ratio) the more likely is its acquisition.

Journal Information

The Review of Economics and Statistics is an 84-year old general journal of applied (especially quantitative) economics. Edited at Harvard University's Kennedy School of Government, The Review has published some of the most important articles in empirical economics. From time to time, The Review also publishes collections of papers or symposia devoted to a single topic of methodological or empirical interest.

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Among the largest university presses in the world, The MIT Press publishes over 200 new books each year along with 30 journals in the arts and humanities, economics, international affairs, history, political science, science and technology along with other disciplines. We were among the first university presses to offer titles electronically and we continue to adopt technologies that allow us to better support the scholarly mission and disseminate our content widely. The Press's enthusiasm for innovation is reflected in our continuing exploration of this frontier. Since the late 1960s, we have experimented with generation after generation of electronic publishing tools. Through our commitment to new products—whether digital journals or entirely new forms of communication—we have continued to look for the most efficient and effective means to serve our readership. Our readers have come to expect excellence from our products, and they can count on us to maintain a commitment to producing rigorous and innovative information products in whatever forms the future of publishing may bring.

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What is the main cause of bank failures?

Banks can fail for a variety of reasons including undercapitalization, liquidity, safety and soundness, and fraud.

Why is the number of banks declining?

Bank mergers increased significantly beginning in the early 1980s; on a percentage basis, mergers continue at a historically high rate. Bank failures and new-bank entries have almost ceased since 2015. The number of commercial banks continues to decline because mergers continue.

What are the major problems faced by banks?

Top 10 Banking Industry Challenges — And How You Can Overcome Them.
Increasing Competition..
A Cultural Shift..
Regulatory Compliance..
Changing Business Models..
Rising Expectations..
Customer Retention..
Outdated Mobile Experiences..
Security Breaches..

Why has there been a drop in the number of bank failures since the Great Depression?

Only 29 insured banks failed from 1942 to 1946. The decline in the number of failed banks was due to the highly liquid state of bank assets, the absence of deposit outflows, and vigorous business activity.