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Analysis Of Bank Performance In California And The Rest Of The Twelfth Federal Reserve District, Stoyu I. Ivanov

Mountain Plains Journal of Business and Technology

"In this study I examine the performance and sensitivity of performance to macro factors of banks headquartered in California and banks headquartered in the rest of the states in the Twelfth Federal Reserve District. I find that prior to the financial crisis which started in the fourth quarter of 2007 the non-California banks outperformed California banks; however, towards the end of the financial crisis California banks outperformed non-California banks. I also find higher macro factor sensitivities of nonCalifornia banks indicating more macro risk carried by these institutions. The higher risk explains the superior performance in expansions and underperformance in recessions …