Too-big-to-fail: Bank failure and banking policy in Jamaica

J. Daley; K. Matthews; K. Whitfield

doi:10.1016/j.intfin.2006.12.002

Too-big-to-fail: Bank failure and banking policy in Jamaica

J. Daley^*
, K. Matthews
, K. Whitfield

^*Corresponding author for this work

Research output: Journal Publication › Article › peer-review

24 Citations (Scopus)

Abstract

Research on the causes of bank failure has focused on developed countries, particularly the United States of America. Relatively little empirical work has examined developing countries. We examine the total population of banks in Jamaica between 1992 and 1998 and find that real GDP growth, size, and managerial efficiency were the most significant factors contributing to the failure of banks. Bank failure is defined to include bailout and regulator-induced or supervised merger. Our results suggest that there were implicit 'too-big-to-fail' policies during this period.

Original language	English
Pages (from-to)	290-303
Number of pages	14
Journal	Journal of International Financial Markets, Institutions and Money
Volume	18
Issue number	3
DOIs	https://doi.org/10.1016/j.intfin.2006.12.002
Publication status	Published - Jul 2008
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

Free Keywords

Bank failures
Developing economies
Jamaica
Too-big-to-fail

ASJC Scopus subject areas

Finance
Economics and Econometrics

Access to Document

10.1016/j.intfin.2006.12.002

Cite this

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title = "Too-big-to-fail: Bank failure and banking policy in Jamaica",

abstract = "Research on the causes of bank failure has focused on developed countries, particularly the United States of America. Relatively little empirical work has examined developing countries. We examine the total population of banks in Jamaica between 1992 and 1998 and find that real GDP growth, size, and managerial efficiency were the most significant factors contributing to the failure of banks. Bank failure is defined to include bailout and regulator-induced or supervised merger. Our results suggest that there were implicit 'too-big-to-fail' policies during this period.",

keywords = "Bank failures, Developing economies, Jamaica, Too-big-to-fail",

author = "J. Daley and K. Matthews and K. Whitfield",

note = "Funding Information: The last decade of the 20th century was unprecedented in Jamaica's financial history. Of a population of 37 banks, 21 were classified as failed, with 14 being so classified in 1 year—1998. However, few outright closures occurred. Most problem banks were merged with other banks, or continued to operate through financial support from the government. More than a half of domestic banks received some kind of financial support from the government, initiated voluntary bankruptcy proceedings or surrendered their licences. ",

year = "2008",

month = jul,

doi = "10.1016/j.intfin.2006.12.002",

language = "English",

volume = "18",

pages = "290--303",

journal = "Journal of International Financial Markets, Institutions and Money",

issn = "1042-4431",

publisher = "Elsevier B.V.",

number = "3",

}

TY - JOUR

T1 - Too-big-to-fail

T2 - Bank failure and banking policy in Jamaica

AU - Daley, J.

AU - Matthews, K.

AU - Whitfield, K.

N1 - Funding Information: The last decade of the 20th century was unprecedented in Jamaica's financial history. Of a population of 37 banks, 21 were classified as failed, with 14 being so classified in 1 year—1998. However, few outright closures occurred. Most problem banks were merged with other banks, or continued to operate through financial support from the government. More than a half of domestic banks received some kind of financial support from the government, initiated voluntary bankruptcy proceedings or surrendered their licences.

PY - 2008/7

Y1 - 2008/7

N2 - Research on the causes of bank failure has focused on developed countries, particularly the United States of America. Relatively little empirical work has examined developing countries. We examine the total population of banks in Jamaica between 1992 and 1998 and find that real GDP growth, size, and managerial efficiency were the most significant factors contributing to the failure of banks. Bank failure is defined to include bailout and regulator-induced or supervised merger. Our results suggest that there were implicit 'too-big-to-fail' policies during this period.

AB - Research on the causes of bank failure has focused on developed countries, particularly the United States of America. Relatively little empirical work has examined developing countries. We examine the total population of banks in Jamaica between 1992 and 1998 and find that real GDP growth, size, and managerial efficiency were the most significant factors contributing to the failure of banks. Bank failure is defined to include bailout and regulator-induced or supervised merger. Our results suggest that there were implicit 'too-big-to-fail' policies during this period.

KW - Bank failures

KW - Developing economies

KW - Jamaica

KW - Too-big-to-fail

UR - https://www.scopus.com/pages/publications/42049100368

U2 - 10.1016/j.intfin.2006.12.002

DO - 10.1016/j.intfin.2006.12.002

M3 - Article

AN - SCOPUS:42049100368

SN - 1042-4431

VL - 18

SP - 290

EP - 303

JO - Journal of International Financial Markets, Institutions and Money

JF - Journal of International Financial Markets, Institutions and Money

IS - 3

ER -

Too-big-to-fail: Bank failure and banking policy in Jamaica

Abstract

UN SDGs

Free Keywords

ASJC Scopus subject areas

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