FDIC: Banking Review


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FDIC Banking Review

This footnote presents three equations or models used in the paper to predict changes in banks' nonperforming asset ratios. Equation one shows the "bank model" and relates changes in nonperforming asset ratios to prior period bank balance sheet and income statement variables (later described in table 3). Equation two shows the "bank and economic model" and related changes in nonperforming asset ratios to prior period bank financial data plus prior period state-level economic data. Finally, equation three shows a na�ve model that relates changes in nonperforming asset ratios to prior period mean changes in nonperforming asset ratios

Last Updated 7/25/2003

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Each depositor insured to at least $250,000 per insured bank