The larger the community bank, the greater importance of new and emerging technologies, finds to a recent analysis of the CSBS 2018 Community Bank Survey.
Impact of Bank Failure is Sometimes Greater Than the Sum of its Parts
Nov 16, 2018
Staff at the Research and Statistics Division of the Federal Reserve Board recently published a working paper examining whether financial stress at small banks has a different impact on the real economy than financial stress at larger banks.
The working paper estimates that the failure of a single large banking organization with an assumed $100 billion in deposits would result in approximately a 107 percent decline in quarterly real GDP growth, whereas stress among five smaller banking organizations—each with an assumed $20 billion in deposits—would result in roughly a 22 percent decline in quarterly real GDP growth.
The paper is an important contribution to the research on the connection between bank size and systemic risk. The findings of the paper are critical to keep in mind as federal regulators seek to tailor regulations applicable to large and small banks while limiting potential damage to the economy in future financial crises.
Recent Blog Posts
Blog post
CSBS Senior Vice President of Digital Services Ngoc Vu discussed how automation and data helps state regulators be more efficient and transparent on Government Matters, a local Washington, D.C. television program.
Dec 7, 2018
Blog post
The current open FDIC director seat should be filled by someone who has served in state government as a supervisor of state-chartered banks, as required by Congress.
Dec 6, 2018
Blog post
Texas Department of Banking Commissioner Charles G. Cooper and CSBS President and CEO John Ryan joined Barb Rehm, senior managing director at Promontory Interfinancial Network in a webinar to discuss the Business of Community Banking.
Nov 29, 2018