Natural Disaster and Bank Stability: Evidence from the U.S. Financial System

摘要: We show that property damages from weather-related natural disasters significantly weaken the stability of banks with business activities in affected regions, as reflected lower z-scores, higher probabilities default, non-performing assets ratios, foreclosure returns on assets, and bank equity ratios. The effects are economically relevant suggest insurance payments public aid programs do not sufficiently protect borrowers against financial difficulties. also find adverse dissolve after some years if no further occur during time.