Capital Ratios as Predictors of Bank Failure

By Arturo Estrella, Sangkyu Park, S. Peristiani. 2006

330 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/c31a02287309699c64fdb5d67ee4f9677977122c

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Citations in the corpus

Do loan loss reserves behave like capital? Evidence from recent bank failures (2014, unknown): “1 Add-back of loan loss reserves as regulatory capital The capital adequacy ratio, or the ratio of regulatory capital to risk-weighted assets, is the metric most widely relied on by regulators to monitor bank solvency (Estrella et al. 2000).”
How Does Capital Affect Bank Performance During Financial Crises (2013, unknown): “Studies of the early 1990s credit crunch generally find that higher capital was associated with a lower probability of failure (e.g., Cole and Gunther, 1995; Estrella, Park, and Peristiani, 2000; Wheelock and Wilson, 2000).”
Explaining bank distress in Eastern European transition economies. (2009, background): “7 This is clear from the US studies; Estrella et al. (2000) show it is robust to a number of definitions of capital and Thompson (1991) shows it is a good predictor of”
Bank capital and loan asymmetry in the transmission of monetary policy (2006, background): “Estella et al. (2000) show convincing evidence that leverage ratios are as good as capital-to-risk-weighted asset ratios, which are applicable in the post-Basel/FDICIA period, in predicting bank failure in the short run.”
Determinants of Bank Distress in Europe: Evidence from a New Data Set (2011, background): “provide a rich data set for a “forensic” examination of the determinants of distress (see, e.g., Lane et al. 1986, Cole and Gunther 1995, Calomiris and Mason 2000, Estrella et al. 2000, and Wheelock and Wilson 2000).”