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Author
Sakouvogui Kekoura (U.S Census Bureau, Washington D.C., United States), Guilavogui Mama Genevieve
Title
How are the United States Banks faring during the COVID-19 Pandemic? Evidence of Economic Efficiency Measures
Source
Open Economics, 2022, vol. 5, iss. 1, s. 11-29, tab., wykr., bibliogr. 81 poz.
Keyword
Banki, COVID-19, Pandemia, Efektywność ekonomiczna, Analiza finansowa
Banks, COVID-19, Pandemic, Economic efficiency, Financial analysis
Note
JEL Classification: C01, C18, C52, Q11
summ.
Country
Stany Zjednoczone Ameryki
United States of America (USA)
Abstract
Due to the current lockdown and restrictions related to the COVID-19, U.S. commercial and domestic banks are facing cashflow and financial difficulties. This has led to many vulnerable customers losing their source of income. In this paper, we examine the importance of financial liquidity and solvency on U.S. commercial and domestic banks' efficiency during the COVID-19. This paper adopts the Data Envelopment Analysis' estimator in a two-step procedure. First, economic efficiency measures of 16,830 December quarterly observations of U.S. commercial and domestic banks are estimated from December 2010 to December 2020. Within each year, 1,530 U.S. commercial and domestic banks are selected. Second, using Tobit and panel fixed effect regression models, the importance of both liquidity and solvency risks on economic efficiency during the COVID-19 is examined. Empirical estimates indicate that both liquidity and solvency financial factors negatively affect the economic efficiency measures of U.S. commercial and domestic banks during the COVID-19. (original abstract)
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Bibliography
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ISSN
2451-3458
Language
eng
URI / DOI
http://dx.doi.org/10.1515/openec-2022-0117
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