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Factors Affecting Regional Bank Health and Supervisory Rating: An Exploration
Local commercial real estate conditions are positively correlated with the health of regional banks (assets between $10 billion and $100 billion), as measured by the composite confidential supervisory rating. Among other variables, return on assets is positively correlated with our proxy of bank health, but size and capital ratio are negatively correlated. Among the different components of the rating, the management rating has the most influence on the composite rating.
Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.
Suggested Citation
Duffy, Denise, Joseph G. Haubrich, and Christopher Healy. 2026. “Factors Affecting Regional Bank Health and Supervisory Rating: An Exploration.” Federal Reserve Bank of Cleveland, Working Paper No. 26-02. https://doi.org/10.26509/frbc-wp-202602
This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
