[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-322774-105":59,"doc-detail-322774-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","financial-fragility-and-regional-economic-growth","Financial Fragility and Regional Economic Growth","","Economic Commentary focuses on how regional credit conditions shape regional economic activity, especially in the wake of uneven performance during the 1980s and concerns following a national recession. The text links deterioration in bank loan quality and rising bank failures to regional disparities, describing how segmented credit markets make monetary policy effects vary by region. It explains the “credit view,” showing why lenders tighten terms when borrowers and ventures face higher default risk and information costs.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/financial-fragility-and-regional-economic-growth/322774/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/financial-fragility-and-regional-economic-growth/322774.png","ImageObject",300,407,{"name":92,"@type":93},"Riley","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-28","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",12,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What main concern does the commentary raise about the financial sector and economic recovery?","Question",{"text":113,"@type":114},"It argues that fragility in the financial sector can constrain the supply of credit, potentially hampering the economy’s recovery.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"Why can national monetary policy have different effects across regions?",{"text":118,"@type":114},"Because the impact of actions like cutting interest rates or lowering reserve requirements differs where banks are healthy versus where capital inadequacy limits credit availability.",{"name":120,"@type":111,"acceptedAnswer":121},"What does the “credit view” mean in this document?",{"text":122,"@type":114},"It describes how credit market activity influences real activity by affecting how resources are allocated, mainly due to funding constraints and information costs faced by investors.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},322774,1790370264,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},1374391975076,"https://ap-avatar.wpscdn.com/avatar/14000253ca4ec9f6853?x-image-process=image/resize,m_fixed,w_180,h_180&k=1783305029341752051","by Katherine A.Samolyk and Rebecca A.Wetmore  \nAIthough the 1980s ushered in thesecond-longest economic expansion inU.S.history,regional economic perform-ance was uneven during the decade.These regional disparities were accom-panied by a deterioration in the qualityof bank loans and a sharp increase in thenumber of bank failures.Indeed,morethan half of the banks that have failedsince the Federal Deposit Insurance Cor-poration was founded in 1933 did soduring the 1980s.  \nNow,in the wake of a national reces-sion,policymakers have become con-cerned that fragility in the financial sec-tor may be constraining the supply ofcredit and hampering the economy'srecovery.It is widely feared that thepressures on bank profitability and cap-ital positions have caused lenders torestrict the flow of credit required tofuel a growing economy.  \nIn a recent address to Congress,FederalReserve Board Chairman Alan Green-span voiced concerm about the role thatcredit is playing in the current economicscenario,stating“...the restraint oncredit availability at depository institu-tions represents a continuing clear riskto the outlook and,therefore,is a criti-cal challenge for [monetary]policy.”  \nWhat is underemphasized,however,isthe regional nature of current financial-sector conditions.Richard Syron,presi-dent of the Federal Reserve Bank ofBoston,has dubbed problems in thebanking industry a “capital crunch”  \n# Financial Fragility andRegional Economic Growth\n\nthat has been more severe in the North-east than in other areas of the country.²  \nRegional disparities in credit conditionspose a problem for the Federal Reserve,because they can be difficult to trouble-shoot with monetary policy tools thatimpact credit markets nationally.AI-though within the past few months theFed has both cut interest rates and low-ered reserve requirements to encouragebank lending,theimpact of these policymoves is likely to be entirely differentin regions where banks are healthy andwilling to lend than in regions wherebank capital inadequacy is constrainingcredit availability.  \nThis Economic Commentary examinesthe linkage between credit conditionsand economic activity from a regionalperspective and discusses how the healthof the financial sector can affecteco-nomic performance when credit marketsare segmented along regional lines.  \n## ■ The Regional Dimensionof Credit Woes\n\nWhile concerns have surfaced about anational credit crunch,both anecdotalevidence and financial data indicate thatcurrent credit problems are localized innature,stemming from regional dispar-ities in banking performance during thepast decade.  \nFigure I compares the ratio of nonper-forming loans to total loans for selectedregions to the national ratio from 1982to 1990.Although the national share of  \nSeptember 15,1991  \nPressures on bank profitability andcapital positions have been blamedfor the perceived constraint on creditavailability in the emergingeconomicrecovery.However,conditions in thebanking industry vary significantlyby region.The authors examine thepotential link between local financialproblems and regional economicgrowth,finding evidence of a regionalcredit channel.  \nnonperforming loans was relativelyflat,there were substantial regionaldifferences in the quality of bank loanportfolios.During this same period,theuneven performance of regional econo-mies became an important focus in as-sessing the national economy.Thesedisparities are reflected in figure 2,which illustrates the growth rate of per-sonal income relative to U.S.personalincome growth for selected regions be-tween 1978 and 1990.  \nThe correlation between regional bank-ing conditions and regional economicperformance is not coincidental.Theregulatory structure of the U.S.bankingindustry reflects a long tradition of geo-graphic barriers in the form of interstatebranching restrictions.These artificialboundaries have resulted in a bankingsystem that is more or less regionallysegmented and whose performance isdependent on the health of ","cbCaiiGWJFIhLkov","https://ap.wps.com/l/cbCaiiGWJFIhLkov","pdf",1285678,"English","# Financial Fragility and Regional Economic Growth\n## The Regional Dimension of Credit Woes\n## A Regional Credit View","[{\"question\":\"What main concern does the commentary raise about the financial sector and economic recovery?\",\"answer\":\"It argues that fragility in the financial sector can constrain the supply of credit, potentially hampering the economy’s recovery.\"},{\"question\":\"Why can national monetary policy have different effects across regions?\",\"answer\":\"Because the impact of actions like cutting interest rates or lowering reserve requirements differs where banks are healthy versus where capital inadequacy limits credit availability.\"},{\"question\":\"What does the “credit view” mean in this document?\",\"answer\":\"It describes how credit market activity influences real activity by affecting how resources are allocated, mainly due to funding constraints and information costs faced by investors.\"}]","Financial Fragility and Regional Economic Growth | PDF",1789963522,13]