The mortgage crisis of 2007/08 has impacted the health of both small and large commercial banks in the financial services industry. The pressing question is how do regulators and bank monitors identify the warning signals of bank vulnerability and bank risk because of weakening credit and asset...

The recent increase in farmland prices leads many to conjecture that a price bubble exists. A dataset of Iowa farmland prices for three grades of quality over the last 60 years is examined to address the question whether the conditions for a rational expectations bubble are evident. An abnormal...

Some past studies of credit risk ratings migration have found trend reversals and evidence that the data generating process is non-stationary. Using a sample of FCS mortgages, we find no compelling statistical evidence of either phenomenon. We do find evidence that our sample of loans may be...

The characterization of obligor ratings dynamics as a Markov chain is a common assumption in credit risk modeling. While a continuous time Markov chain is most appealing due to the potential for more robust transition probability estimates, the cost of continuously monitoring obligor ratings can...

Some past studies of credit risk ratings migration have found trend reversals and evidence that the data-generating process is nonstationary. Using a sample of Farm Credit System mortgages, we find no compelling statistical evidence of either phenomenon. We do find evidence that our sample of...

This paper presents a dynamic model of a bank’s optimal choices of imposing a binding liquidity-coverage-ratio (LCR) constraint. Our baseline balance-sheet dynamics starts with portfolio separation and no LCR constraint. Under a scenario in which regulators prohibit banks from applying...

In this paper, I attempt to amalgamate the study of leverage-ratio performance with the monitoring decisions of a profit-maximizing bank. Applying tools used in studying the industrial organization of banking, my paper serves as a first step to tying the performance differences between the...

This study tries to get a sense of the topography of the regional banking landscape. We focus on bank holding companies and banks with $10 billion to $50 billion in assets and look for factors that potentially explain regional bank health from 2008 to 2013. Our dataset is a combination of bank...