Size and support ratings of US banks

Working Papers
Lees voor

Gepubliceerd: 11 augustus 2014

Door: Tigran Poghosyan Charlotte Werger Jakob de Haan

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’ argument. After the failure of Lehman Brothers and the passing of Dodd-Frank the relation between size and potential support has become stronger. 
 
Keywords: Support ratings, Bank size, Too-big-too-fail, Financial crises.
JEL classification: G21, G32, L25.

Working paper no. 434

434 - Size and support ratings of US banks

1,8MB PDF
Download 434 - Size and support ratings of US banks

Ontdek gerelateerde artikelen