The negative correlation between nonperforming loans of large and small banks

Author

Rodriguez Mendizabal, Hugo

Barcelona School of Economics

Publication date

2018

Abstract

This paper presents a new stylized fact about bank nonperforming loans. According to data for the US, the average of the ratio of noncurrent loans to total loans for large banks presents a very high negative correlation with the same ratio for small banks. This result remains valid for different measures of bank size as well as controlling for different bank characteristics such as charter class, specialization or geographical location.

Document Type

Working paper

Language

English

Subjects and keywords

Bank size; Nonperforming loans

Publisher

Barcelona Graduate School of Economics

Related items

Barcelona Graduate School of Economics. ADEMU working paper series ;

Rights

open access

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