[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-324520-105":59,"doc-detail-324520-en":130},{"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":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","underlying-causes-of-commercial-bank-failures-in-the-1980s-regional-influences","Underlying Causes of Commercial Bank Failures in the 1980s - Regional Influences","","The 1980s marked the longest peacetime economic expansion since World War II while also producing a record wave of commercial bank failures. More than 200 banks failed each year from 1987 through 1989, and failure rates remained elevated into the early 1990s. This commentary analyzes how economic conditions and managerial behavior jointly shaped failures between 1982 and 1989, emphasizing regional economic downturns and the consequences of limited geographic diversification.",{"@graph":69,"@context":122},[70,84,105],{"@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/underlying-causes-of-commercial-bank-failures-in-the-1980s-regional-influences/324520/",{"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/underlying-causes-of-commercial-bank-failures-in-the-1980s-regional-influences/324520.png","ImageObject",300,407,{"name":92,"@type":93},"Lucas Martin","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-02","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":44},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What major trends made the 1980s record bank failures occur during strong economic times?","Question",{"text":112,"@type":113},"Bank failures rose sharply despite the overall expansion. The analysis points to both regional economic problems and managerial behavior in an increasingly deregulated and competitive environment.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How do regional influences affect a bank’s risk and loan quality?",{"text":117,"@type":113},"Because branching restrictions limit where banks can operate, many loans concentrate in regions where the bank has a physical presence. Loan quality then depends heavily on local economic conditions, so regional downturns raise failure risk.",{"name":119,"@type":110,"acceptedAnswer":120},"Which types of regional economies were most associated with bank failures in the 1980s?",{"text":121,"@type":113},"Failures were concentrated in states experiencing declines in major sectors such as oil, agriculture, and real estate, with especially heavy impact in the Southwest and other energy- and agriculture-dependent areas.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},324520,1790618416,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":44,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},8796095360427,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","by Lynn D.Seballos and James B.Thomson  \nA  \nthe longest peacetime economic expan-sion since World War II,the 1980s alsogenerated the greatest number of com-mercial bank failures since the GreatDepression.More than 200 banks failedeach year from 1987 through 1989,andthe average annual failure rate for thedecade was almost nine times the aver-age annual level between 1934 and1979.To place these two conflictingtrends in perspective,more than 24times as many banks failed inthisexpansion as failed during the upswingof the 1960s,which until now was thelongest sustained postwar expansion(see figure 1).²  \nAt this point,there appears to be norelief in sight.More than 100 banksfailedin the first half of this year,andwith regulators classifying nearly 10percent of allbanks as problem institu-tions,failures are expected to average150 to 200 per year for the next severalyears.Recent commercial real estatedifficulties,especially in the Northeastand Southwest,will likely add to thenumber of problem and failed banks inthe 1990s.  \nWhy are bank failures hitting record ratesduring good economic times?There aretwo probable causes.First,the U.S.bank-ing system is a regional system.Eco-nomic slumps in specific areas of thecountry,which do not necessarily coin-cide with national downtums,may be  \n# Underlying Causes of CommercialBank Failures in the 1980s\n\npartly responsible for the upsurge.Second,the rise in the failure rate maybe trace to the behavior of bankmanagement in increasingly dereg-ulated and competitive financialmarkets.This Economic Commentaryinvestigates the role each of these factorsmay have played in the failures of banksbetween 1982 and 1989.We concludethat while regional economic problemscontributed to the demise of many of thebanks during this period,a bank's abilityto survive is ultimately determined bymanagerial factors.  \n## ■ Regional Influences\n\nThe historical preference for geographi-cally limited banking in this countryhas resulted in a fragmented regionalbanking structure at the national level,which ties bank performance moreclosely to the regional rather than thenational economy.This occurs becausebranching restrictions at the nationaland sometimes the state level limitwhere banks can locate their offices.This,in tum,limits the geographicdiversification of a bank's portfolio,asthe majority of the bank's loans aremadein areas where it has a physicalpresence;consequently,the quality ofthese loans is heavily dependent on thefortunes of the region.It is no accidentthat bank failures in the 1980s wereconcentrated in states that experienceddownturns in important economic sec-tors,such as oil.agriculture,and realestate.  \nSeptember 1,1990  \nBanks failed at record rates duringthe past decade,and no relief appearsto be in sight.This article examinesthe contributions of economic andmanagerial factors to the highestbank failure rate since the GreatDepression.  \nDuring the early part of the decade,problems in agriculture seemed to bedriving bank failures.As seen in figure  \n2,banks classified as agricultural(withmore than 25 percent of their loans inthis sector)accounted for a large per-centage of the failuresin the mid-1980s.The percentage of failed banks thatwere categorized as agricultural rosefrom 30 percent in 1984 to a peak ofalmost 55 percent in 1985.Between1986 and 1989,however,that ratio fellfrom 41 percent to less than 8 percent,adrop-off that can be traced to two fac-torsFirst,the agricultural sector bot-tomed out and began to recover in thelatter half of the decade,which resultedin a decline in the total number ofagricultural banks failing after 1985.Second,total bank failures swelleddramatically in the last half of the1980s as the downturm in the real estatemarket in the Southwest and the Westadded to the economic woes of regionsalready depressed by the deteriorationof the energy-producing sector.  \nAs table 1 shows,the states experienc-ing the most bank failures between1982 and 1989 were Texas,with 368,and Oklahoma,w","cbCaipO4W8L7sup8","https://ap.wps.com/l/cbCaipO4W8L7sup8","pdf",1131106,"English","# Underlying Causes of Commercial Bank Failures in the 1980s\n## Regional Influences","[{\"question\":\"What major trends made the 1980s record bank failures occur during strong economic times?\",\"answer\":\"Bank failures rose sharply despite the overall expansion. The analysis points to both regional economic problems and managerial behavior in an increasingly deregulated and competitive environment.\"},{\"question\":\"How do regional influences affect a bank’s risk and loan quality?\",\"answer\":\" Because branching restrictions limit where banks can operate, many loans concentrate in regions where the bank has a physical presence. Loan quality then depends heavily on local economic conditions, so regional downturns raise failure risk.\"},{\"question\":\"Which types of regional economies were most associated with bank failures in the 1980s?\",\"answer\":\" Failures were concentrated in states experiencing declines in major sectors such as oil, agriculture, and real estate, with especially heavy impact in the Southwest and other energy- and agriculture-dependent areas.\"}]","Underlying Causes of Commercial Bank Failures in the 1980s - Regional Influences | PDF",1789968137,13]