This paper quantifies the short-term and long-term impact of bank supervision (measured using CAMEL composite and component ratings) on different categories of loan growth: (a) commercial and industrial loans, (b) consumer loans, and (c) real estate loans. For each of these categories, we...

Outside monitors provide important information that can help stockholders, creditors, regulators and other stakeholders apply market discipline. In the banking industry, government examiners are an additional outside monitor but with one important difference: bank examination ratings are not...

The paper examines the informational content of market data when these data are incorporated into traditional models that predict bank failures. To assess whether financial markets can provide timely information about firm distress, we first examine the pre-failure behavior of market variables...

The purpose of this article is to assess the relationship, in timing and magnitude, between equity market valuations of commercial banks and thrift institutions and changes in the supervisory ratings for these organizations. In particular, we ask two questions: to what extent do market variables...