Journal of Financial Economic Policy最新文献

Purpose

Bank failures are critical events that have far-reaching implications for the financial system and various stakeholders. This study aims to focus on analyzing the phenomenon of small bank failures in the USA.

Design/methodology/approach

This study adopts the coarsened exact matching (CEM) technique to enhance the reliability of the analysis. By matching similar observed characteristics, the CEM approach helps to address potential selectivity bias and facilitates a more accurate estimation of the treatment effect. This study uses a data set covering the period from 2000 through 2019 and includes 523 failed bank observations and 43,605 nonfailed bank observations.

Findings

The results reveal several key findings. Small banks, especially those with lower yields on earning assets, those with lower charge-offs on loans and leases, those with higher core capital ratios and those with higher Fed Funds rates are found to be more susceptible to failure.

Research limitations/implications

Some results align with initial predictions, whereas others present contrasting outcomes.

Practical implications

This study underscores the significance of understanding the factors contributing to bank failure and emphasizes the importance of studying small bank failures in particular.

Originality/value

This study uses the CEM method. CEM is a comprehensive approach that combines matching, sample trimming and reweighting techniques. When applying CEM, researchers carefully select a set of core variables to achieve balance between the treated and control groups. The CEM process involves discretizing each continuous variable into distinct bins or categories, a process known as “coarsening.” It then requires an exact match among these binned variables between the treated and control units, which constitutes the matching step in CEM.

Purpose

In the wake of rapid banking consolidations in the USA, concerns have arisen about the accessibility of capital and financial services for new businesses. With fewer and more centralized banking options, the likelihood of these entities securing financing may be compromised. This study aims to explore the repercussions of this consolidation on entrepreneurial activities in the U.S. Midwest.

Design/methodology/approach

To measure entrepreneurship, this study examines various business application metrics: total applications, high-propensity business applications (i.e. those with a high likelihood of evolving into businesses with payrolls), business applications from corporations (applications stemming from corporations or personal service entities) and applications with planned wages (those indicating a forthcoming payroll date). To assess the banking sector’s consolidation, this study used the deposit-based Herfindahl–Hirschman Index (HHI), a well-known measure of banking concentration.

Findings

This research underscores the detrimental impact of banking consolidation on various new business formations. To illustrate, a one standard deviation surge in the HHI, roughly 1253 points, correlates with a decline of approximately 16 total business applications, 7.3 high-propensity business applications, 3.72 applications originating from corporations and 3 applications indicating planned wages – all per 10,000 individuals. The findings indicate that reduced banking competition could slow down new business formations and negatively affect entrepreneurship.

Originality/value

This study examines various business formation statistics and use deposits at the institution level to determine banking concentration.

Ocular flutter (OF) is a rare oculomotor syndrome. The most common etiologies are paraneoplastic, postinfectious and toxic-metabolic. However post-vaccinal etiology was rarely reported in OF. Here, we reported a post-vaccinal clinical syndrome characterized by OF-myoclonus and ataxia associated with oligoclonal bands (OCBs). A 60-year-old male who presented with dizziness, unsteady gait, involuntary movements, involuntary conjugate eye oscillations and extremity jerks that started 3 days after the second dose of mRNA BNT162b2 Covid-19 vaccine. Routine biochemical and serological analysis were within normal limits. No pathological finding was detected in brain MRI. Paraneoplastic and autoimmune encephalitis tests were unremarkable in cerebrospinal fluid (CSF). Oligoclonal bands were positive in CSF. This is the first description of the relationship between vaccines against SARS-CoV-2 and the clinical syndrome of OF, Myoclonus and Ataxia (OFMAS). Humoral immune mechanisms seem to play an important role in OFMAS. Presence of OCBs in CSF may also be associated with this condition.