Bank failure :
evidence from the Colombian financial crisis /
by Jose E. Gomez-Gonzalez, Nicholas M. Kiefer

Description

Main Author

Gomez-Gonzalez, Jose E

Related Names

Kiefer, Nicholas M., 1951-
United States. Office of the Comptroller of the Currency

Language(s)

English

Published

Washington, DC : Office of the Comptroller of the Currency, [2007]

Subjects

Financial crises > Financial crises / Colombia
Bank failures > Bank failures / Colombia

Summary

"Bank-specific determinants of bank failure during the financial crisis in Colombia are identified and studied using duration analysis. The process of failure of banks and related financial institutions during that period can be explained by differences in financial health and prudence across institutions. The capitalization ratio is the most significant indicator explaining bank failure. Increases in this ratio lead to a reduction in the hazard rate of failure at any given moment in time. This ratio exhibits a non-linear component. At lower levels of capitalization small differences in capitalization are associated with larger differences in failure rates. Our results thus provide empirical support for existing regulatory practice. Other important variables explaining bank failure dynamics are the bank's size and profitability"--Abstract

Note

"March 15, 2007."

Physical Description

25 pages : illustrations ; 28 cm

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