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Economic Commentary

Financial Fragility and Regional Economic Growth

Although the 1980s ushered in the second-longest economic expansion in U.S. history, regional economic performance was uneven during the decade. These regional disparities were accompanied by a deterioration in the quality of bank loans and a sharp increase in the number of bank failures. Indeed, more than half of the banks that have failed since the Federal Deposit Insurance Corporation was founded in 1933 did so during the 1980s.

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 paper and its data are subject to revision; please visit for updates.

Suggested Citation

Samolyk, Katherine, and Rebecca Wetmore-Humes. 1991. “Financial Fragility and Regional Economic Growth.” Federal Reserve Bank of Cleveland, Economic Commentary 9/15/1991.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International