Bank Health Post-Crisis
17 Pages Posted: 11 Feb 2017
Date Written: February 10, 2017
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: Suggested Citation