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Su-Jane Chen
 
''Beta convergence and sigma convergence of key financial ratios post the Great Recession: community banks vs. non-community banks''
( 2023, Vol. 43 No.2 )
 
 
This study investigates whether there is a convergence in key U.S. bank financial ratios for the period of 2010-2017, the immediate aftermath of the Great Recession. It reveals both beta and sigma convergences and suggests a progression of bank profitability, capital sufficiency, and liquidity towards a common level and a reduction of cross-sectional dispersion over time. This research also examines the convergence speed of two bank groups, community banks and non-community banks, given their drastically different business models, geographical coverage, and size. The test results show that community banks in general adjust at a slower speed than non-community banks.
 
 
Keywords: Community banks, Non-Community banks, Beta convergence, Sigma convergence, Great Recession
JEL: G2 - Financial Institutions and Services: General
E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
 
Manuscript Received : Feb 17 2023 Manuscript Accepted : Jun 30 2023

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