Abstract
The number of commercial bank failures varied within a narrow and low range between 1943 and 1974. The highest number of failures during that period was 9, in 5 of the 32 years during this interval; the lowest number was 1. The number of failures has risen and become much more volatile since 1974, varying between 5 and 17 from 1975 to 1981 and then rising sharply to 34 in 1982, 45 in 1983, 78 in 1984, 118 in 1985, and 145 in 1986.1 In relative terms, the failure rate has increased from negligible levels to 1% of the number of commercial banks operating in the United States. A 1% failure rate remains low relative to experience in other industries. Nonetheless, the increase in the number of failures is a dramatic development and as such merits an explanation.
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© 1989 Kluwer Academic Publishers
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Nelson, R.W. (1989). Management Versus Economic Conditions as Contributors to the Recent Increase in Bank Failures. In: Stone, C.C. (eds) Financial Risk: Theory, Evidence and Implications. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2665-3_7
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DOI: https://doi.org/10.1007/978-94-009-2665-3_7
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