Fed: Empirical Relationship Between the Tier 1 Leverage Ratio and Community Bank Failures After the Global Financial Crisis
December 17, 2025
December 17, 2025
WASHINGTON, Dec. 17 -- The Federal Reserve issued the following Fed Notes article:
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The Empirical Relationship Between the Tier 1 Leverage Ratio and Community Bank Failures after the Global Financial Crisis
By Akos Horvath
This note uses a logistic regression to model community bank failures in the period from 2008 to 2012 and estimates how the probability of bank failure depends on the tier 1 leverage ratio. Over this five-year period, ab . . .
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The Empirical Relationship Between the Tier 1 Leverage Ratio and Community Bank Failures after the Global Financial Crisis
By Akos Horvath
This note uses a logistic regression to model community bank failures in the period from 2008 to 2012 and estimates how the probability of bank failure depends on the tier 1 leverage ratio. Over this five-year period, ab . . .