TY  - JOUR
AU  - Mitchener,Kris James
TI  - Are Prudential Supervision and Regulation Pillars of Financial Stability? Evidence from the Great Depression
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12074
PY  - 2006
Y2  - March 2006
UR  - http://www.nber.org/papers/w12074
L1  - http://www.nber.org/papers/w12074.pdf
N1  - Author contact info:
Kris James Mitchener
Department of Economics
Leavey School of Business
Santa Clara University
Santa Clara, CA 95053
Tel: 408/554-4340
Fax: 408/554-2331
E-Mail: kmitchener@scu.edu
AB  - Drawing on the variation in financial distress across U.S. states during the Great Depression, this article suggests how bank supervision and regulation affected banking stability during the Great Depression. In response to well-organized interest groups and public concern over the bank failures of the 1920s, many U.S. states adopted supervisory and regulatory standards that undermined the stability of state banking systems in the 1930s. Those states that prohibited branch banking, had higher reserve requirements, granted their supervisors longer term lengths, or restricted the ability of supervisors to liquidate banks quickly experienced higher state bank suspension rates from 1929 to 1933.
ER  -