Predictors of Bank Distress: The 1907 Crisis in Sweden

Forskningsoutput: Working paper

Standard

Predictors of Bank Distress : The 1907 Crisis in Sweden. / Grodecka, Anna; Kenny, Sean; Ögren, Anders.

2018. (Lund Papers in Economic History. General Issues ; Nr. 2018:180).

Forskningsoutput: Working paper

Harvard

Grodecka, A, Kenny, S & Ögren, A 2018 'Predictors of Bank Distress: The 1907 Crisis in Sweden' Lund Papers in Economic History. General Issues , nr. 2018:180.

APA

Grodecka, A., Kenny, S., & Ögren, A. (2018). Predictors of Bank Distress: The 1907 Crisis in Sweden. (Lund Papers in Economic History. General Issues ; Nr. 2018:180).

CBE

Grodecka A, Kenny S, Ögren A. 2018. Predictors of Bank Distress: The 1907 Crisis in Sweden. (Lund Papers in Economic History. General Issues ; 2018:180).

MLA

Grodecka, Anna, Sean Kenny, och Anders Ögren Predictors of Bank Distress: The 1907 Crisis in Sweden. Lund Papers in Economic History. General Issues ; 2018:180. 2018., 55 s.

Vancouver

Grodecka A, Kenny S, Ögren A. Predictors of Bank Distress: The 1907 Crisis in Sweden. 2018. (Lund Papers in Economic History. General Issues ; 2018:180).

Author

Grodecka, Anna ; Kenny, Sean ; Ögren, Anders. / Predictors of Bank Distress : The 1907 Crisis in Sweden. 2018. (Lund Papers in Economic History. General Issues ; 2018:180).

RIS

TY - UNPB

T1 - Predictors of Bank Distress

T2 - The 1907 Crisis in Sweden

AU - Grodecka, Anna

AU - Kenny, Sean

AU - Ögren, Anders

PY - 2018

Y1 - 2018

N2 - This paper contributes to literature on bank distress using the Swedish experience of the in- ternational crisis of 1907, often paralleled with 2008. By employing previously unanalyzed bank-level data, we use logit regressions and principal component analysis to measure the im- pact of pre-crisis bank characteristics on the probability of their subsequent distress. The crisis was characterized by “creative destruction,” as those banks with weaker corporate governance structures, wider branching networks, operating with lower cost efficiency were more likely to experience distress. We find that poor credit allocation rather than foreign borrowing, as often stressed, were associated with ultimate demise.

AB - This paper contributes to literature on bank distress using the Swedish experience of the in- ternational crisis of 1907, often paralleled with 2008. By employing previously unanalyzed bank-level data, we use logit regressions and principal component analysis to measure the im- pact of pre-crisis bank characteristics on the probability of their subsequent distress. The crisis was characterized by “creative destruction,” as those banks with weaker corporate governance structures, wider branching networks, operating with lower cost efficiency were more likely to experience distress. We find that poor credit allocation rather than foreign borrowing, as often stressed, were associated with ultimate demise.

KW - Bank Distress

KW - Financial Crises

KW - Swedish Banks

KW - Lender of Last Resort

KW - E58

KW - G21

KW - G28

KW - H12

KW - N23

M3 - Working paper

T3 - Lund Papers in Economic History. General Issues

BT - Predictors of Bank Distress

ER -