Size and Support Ratings of US Banks
Copyright policy )Size and Support Ratings of US Banks
We examine whether Fitch support ratings of US banks depend on bank size. Using quarterly data for the period 2004:Q4 to 2012:Q4 and controlling for several factors that make large and small banks different, we find that bank size is positively related to support ratings. However, the effect is non-linear in line with the 'too-big-to-rescue' hypothesis. After the failure of Lehman Brothers and the passing of Dodd-Frank the relation between size and potential support has become stronger.
- European University Institute Italy
- International Monetary Fund United States
- De Nederlandsche Bank Netherlands
- University of Groningen Netherlands
- Center for Economic Studies Germany
Risk, RISK, Holding companies, GOVERNMENT SUPPORT, RETURNS, Too-big-to-rescue, Fail, HOLDING COMPANIES, Government support, Diversification, FAIL, Too big, Bank size, DIVERSIFICATION, Too-big-too-fail, Returns, Support ratings, TOO BIG
Risk, RISK, Holding companies, GOVERNMENT SUPPORT, RETURNS, Too-big-to-rescue, Fail, HOLDING COMPANIES, Government support, Diversification, FAIL, Too big, Bank size, DIVERSIFICATION, Too-big-too-fail, Returns, Support ratings, TOO BIG
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