Does Regional Economic Performance Affect Bank Conditions? New Analysis of an Old Question
- Topics:
- Commercial Banking
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Overview: The idea that regional economic performance affects bank health is intuitive and broadly consistent with the aggregate banking data. That said micro-level research on this relationship provides a mixed picture of the importance, size, and timing of regional variables for bank performance. This paper helps in reconciling the heterogeneous findings of previous research by: employing a unique "composite measure" of regional economic performance that combines several regional indicators into a single index. It also takes into consideration, constructing bank-specific measures of regional economic conditions, based on bank deposit shares that account for banks' presence in several states.
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Format: PDF | Size: 127KB | Date: Nov 2003 | Pages: 35




