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Full-Text Articles in Business
Stock Price Reactions To The Passage Of The Federal Deposit Insurance Corporation Improvement Act Of 1991, Andrew H. Chen, Marcia Millon Cornett, Sumon C. Mazumdar, Hassan Tehranian
Stock Price Reactions To The Passage Of The Federal Deposit Insurance Corporation Improvement Act Of 1991, Andrew H. Chen, Marcia Millon Cornett, Sumon C. Mazumdar, Hassan Tehranian
Historical Working Papers
Data from CRSP tapes describing commercial banks were analyzed to study the effects of regulatory changes in the FDIC insurance rates that were intended to minimize any incentive for banks to take excessive lending risks. Results suggest that the Act increased the value of large banks and decreased the value of small banks. This leads to the conjecture that the this change may lead to greater consolidation in the U.S. banking industry and improve the competitive position of U.S. banks with respect to foreign banks.