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Bank Health Post-Crisis

17 Pages Posted: 11 Feb 2017  

Kyriakos Chousakos

Yale University, School of Management, Students

Gary B. Gorton

Yale School of Management; National Bureau of Economic Research (NBER)

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Date Written: February 10, 2017

Abstract

Economic growth is persistently low following a financial crisis, possibly because of a continuing weak banking system. In a financial crisis bank health is significantly damaged. Post-crisis regulatory changes have aimed at restoring bank health, but measuring bank health by Tobin's Q, we find that the ill health of banks in the recent U.S. financial crisis and the Euro crisis has persisted, especially compared to other crises in advanced economies. The low bank Q's cannot be explained by the state of the macro-economy. The results seem to suggest that bank regulatory changes have been repressive.

Keywords: Bank health, financial crisis

JEL Classification: E58, G01, G21

Suggested Citation

Chousakos, Kyriakos and Gorton, Gary B., Bank Health Post-Crisis (February 10, 2017). Available at SSRN: https://ssrn.com/abstract=2915241

Kyriakos Chousakos

Yale University, School of Management, Students ( email )

New Haven, CT
United States

Gary Gorton (Contact Author)

Yale School of Management ( email )

165 Whitney Ave
P.O. Box 208200
New haven, CT 06511
United States

HOME PAGE: http://mba.yale.edu/faculty/profiles/gorton.shtml

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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