Size and support ratings of US banks
11 augustus 2014
Onderzoek
Toezichtlabel
Working Papers
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
Auteur(s)
- Tigran Poghosyan
- Charlotte Werger
- Jakob de Haan