Bank Health Post-Crisis

17 Pages Posted: 11 Feb 2017

See all articles by Kyriakos Chousakos

Kyriakos Chousakos

Bank of America

Gary B. Gorton

Yale School of Management; National Bureau of Economic Research (NBER); Yale University - Yale Program on Financial Stability

Multiple version iconThere are 2 versions of this paper

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 or http://dx.doi.org/10.2139/ssrn.2915241

Kyriakos Chousakos

Bank of America

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Gary B. Gorton (Contact Author)

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