Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/189958
Authors: 
Grodecka, Anna
Kenny, Sean
Ögren, Anders
Year of Publication: 
2018
Series/Report no.: 
Sveriges Riksbank Working Paper Series 358
Abstract: 
This paper contributes to literature on bank distress using the Swedish experience of the international 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 impact 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.
Subjects: 
Bank Distress
Financial Crises
Swedish Banks
Lender of Last Resort
JEL: 
E58
G21
G28
H12
N23
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size
480.82 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.