Lynn Kendall - Research Insights

Lynn Kendall, Satish & Yasmin Gupta College of Business

Lynn KendallBank Failure Prediction and the Subprime Mortgage Crisis

The most recent financial crisis, generally viewed as being precipitated by the early 2000s spate of sub-prime mortgages and their securitization, led to the failure of 507 banks between 2008 and 2014. The year 2008 saw the first wave of 25 bank failures and by the middle of 2009, another 45 banks had closed. This prompted us to develop a model to predict future bank failures from mid-2009. Bank failures in this period can be predicted based on traditional bank financial strength proxies as well as identification of key loan portfolio components. Our findings indicate that financial ratios and loan portfolio structure are key determinants of bank financial health; and when predicting potential failure over a reasonable time period, such as up to 18 months, models can be highly predictive. The high degree of correct categorization combined with simple nature of the model and the use of readily available data allows for wide-spread usage among practitioners as well as academics.

Kendall, Lynn, and Walter Kendall (2016). Bank Failure Prediction and the Subprime Mortgage Crisis. E-Journal of Business & Economic Issues, XI (III).

Faculty Profile: Lynn Kendall

News

Iraqi Couple Will Use UD Education to Enrich, Preserve Culture

They came here so that someday, they can go back with even more to offer. Sana Kandalan, MA '19, and Anmar Oghanna, MBA '19, a wife and husband, both received scholarships to pursue graduate education at UD; they hope to use their degrees and experiences here to better serve their community back home in Erbil.

+ Read More

Trailblazing Golden Crusaders Pave Path for Future Generations

During their freshman year, a mere nine miles from the UD campus, President John F. Kennedy was shot in Dealey Plaza on Nov. 22, 1963. Kennedy's famous words, "Ask not what America will do for you, but what together we can do for the freedom of man," were imprinted on the memories of these freshmen, influencing the development of their characters and philanthropic spirits and empowering them to serve with distinction in all types of vocations.

+ Read More

Professor Scott Churchill Explores the Souls of Animals

After happening across the early biophilosopher Jakob von Uexküll as a freshman biology major, Professor of Psychology Scott Churchill began peering into the worlds of animals through what Uexküll called the "spiritual eye" rather than our physical one; there, he discovered the animal spirit.

+ Read More