Recovery determinants of distressed banks: Regulators, market discipline, or the environment?

Arbeitspapier

Based on detailed regulatory intervention data among German banks during 1994-2008, we test if supervisory measures affect the likelihood and the timing of bank recovery. Severe regulatory measures increase both the likelihood of recovery and its duration while weak measures are insignificant. Results seem not to be driven by regulators directing measures to particularly bad banks. That is, our results remain intact when we exclude banks that eventually exit the market due to restructuring mergers or moratoria. More transparent publication requirements of public incorporation that indicate more exposure to market discipline are barely or not at all significant. Increasing earnings and cleaning credit portfolios are consistently of importance to increase recovery likelihood, whereas earnings growth accelerates the timing of recovery. Macroeconomic conditions also matter for bank recovery. Hence, concerted micro- and macro-prudential policies are key to facilitate distressed bank recovery.

Angaben zum Objekt

• ISBN: 978-3-86558-613-1
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Paper Series 2 ; No. 2010,02

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Institutions and Services: Government Policy and Regulation ; Duration Analysis; Optimal Timing Strategies ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Thema: Bank distress ; capital support ; regulation ; recovery ; Bankinsolvenz ; Bankenpolitik ; Bankenaufsicht ; Deutschland

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kick, Thomas ; Koetter, Michael ; Poghosyan, Tigran
• Ereignis: Veröffentlichung
• (wer): Deutsche Bundesbank
• (wo): Frankfurt a. M.
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/32550
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ