Original scientific paper
https://doi.org/10.1080/1331677X.2019.1689838
Revisiting bank failure in the United States: a fuzzy-set analysis
Alexandre Momparler
Pedro Carmona
Francisco Climent
Abstract
Past financial crises have illustrated the importance of recognising
the combinations of factors that can cause financial distress in
the banking industry. Accordingly, this study uses fuzzy-set qualitative
comparative analysis (fsQCA) to identify the combinations
of factors that lead to bank failure. The data consist of 30 annual
financial ratio series for 156 U.S. banks over a 15-year period
(2001–2015). Identifying combinations of conditions that can produce
bank failure is crucial to help regulators and bank managers.
The fsQCA presented in this paper sheds light on the relationships
between combinations of conditions and bank failure, providing
a solution comprising two sufficient and disjunctive sets of
conditions that lead to bank failure. This solution includes financial
indicators of performance, asset quality, efficiency and capitalisation.
The robustness of the two sets of conditions is assessed
using several tests.
Keywords
Bank failure; bank failure prevention; bank financial distress; fuzzy-set qualitative comparative analysis (fsQCA
Hrčak ID:
254674
URI
Publication date:
9.2.2021.
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