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FDIC Banking Review

Table 1

Variables Included in Bank Failure-Prediction Models

Standard Bank Financial Data

  • Asset-quality measures
  • CAMEL ratings
  • Capital/asset ratios

    Other Bank Data

  • Five years of loan growth, asset growth
  • Growth associated with mergers
  • Mean and standard deviation of operating income
  • Average salary
  • Loan-to-asset ratio
  • Other

    Proxies for Economic Conditions
    (during previous five years)

  • State personal-income growth
  • State employment growth
  • State unemployment rate
  • Growth in total loans issued by insured banks headquartered in the state
  • Growth in total assets held by insured banks headquartered in the state

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