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Saturday, September 29, 2012

How frequent is bank failure?

Marketwatch reported on September 28th 2012 that First United Bank is the 43rd bank to fail in the US this year!!!

First United Bank is 43rd 2012 U.S. bank failure

However, if that sounds like a lot, turns out that on average 70 banks fail in the US annually... Problem Bank List does us all a favor and track all bank failure news.

One can pull practically any and all bank failure data from the FDIC database, as an example see this table displaying all US bank failures from 1990 to date.

The FDIC maintains and regularly updates a failed bank list

The St. Louis Fed issued an interesting report on bank failures, analyzing bank failures between 2007 and 2010 but providing extensive graphical analysis of bank failures more or less from the beginning of the 20th century to date. The report is titled The Geographic Distribution and Characteristics of US Bank Failure (download).

BigThink ran a nice piece on Why Banks Fail—And Why They Fail on Friday back in 2010.

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