Abstract
The last decade was marked by a record rate of post-depression bank failures. From 1982 through the end of 1992, 1,429 banks were closed, accounting for 71 percent of those closed since the inception of the Federal Deposit Insurance Corporation (FDIC) in 1934. Even more striking, however, were the record losses that were posted. The cost to the FDIC of resolving bank failures averaged 21 percent of total closed-bank assets from 1986 through 1992. By comparison, Benston et al. (1986) report that losses to depositors due to the bank failures of 1930–33 represented only about 0.81 percent of total failed bank assets.
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Osterberg, W.P., Thomson, J.B. (1995). Underlying Determinants of Closed-Bank Resolution Costs. In: Cottrell, A.F., Lawlor, M.S., Wood, J.H. (eds) The Causes and Costs of Depository Institution Failures. Innovations in Financial Markets and Institutions, vol 9. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-0663-4_4
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DOI: https://doi.org/10.1007/978-94-011-0663-4_4
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