Size and Support Ratings of US Banks

31 Pages Posted: 12 Aug 2014

See all articles by Tigran Poghosyan

Tigran Poghosyan

International Monetary Fund (IMF)

Charlotte Werger

European University Institute

Jakob de Haan

University of Groningen - Faculty of Economics and Business; CESifo (Center for Economic Studies and Ifo Institute); De Nederlandsche Bank

Date Written: August 11, 2014

Abstract

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

Suggested Citation

Poghosyan, Tigran and Werger, Charlotte and de Haan, Jakob, Size and Support Ratings of US Banks (August 11, 2014). De Nederlandsche Bank Working Paper No. 434, Available at SSRN: https://ssrn.com/abstract=2479199 or http://dx.doi.org/10.2139/ssrn.2479199

Tigran Poghosyan

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Charlotte Werger

European University Institute ( email )

Villa Schifanoia
133 via Bocaccio
Firenze (Florence), Tuscany 50014
Italy

Jakob De Haan (Contact Author)

University of Groningen - Faculty of Economics and Business ( email )

PO Box 800
Groningen, 9700 AV
Netherlands
+31 0 50 3633706 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

De Nederlandsche Bank ( email )

P.O. Box 98
Amsterdam, 1000 AB
Netherlands

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
51
Abstract Views
782
Rank
690,560
PlumX Metrics