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Economic Commentary

Underlying Causes of Commercial Bank Failures in the 1980s

Banks failed at record rates during the past decade, and no relief appears to be in sight. This article examines the contributions of economic and managerial factors to the highest bank failure rate since the Great Depression.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Seballos, Lynn, and James B. Thomson. 1990. “Underlying Causes of Commercial Bank Failures in the 1980s.” Federal Reserve Bank of Cleveland, Economic Commentary 9/15/1990.