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BY 4.0 license Open Access Published by De Gruyter Open Access April 26, 2022

How are the United States Banks faring during the COVID-19 Pandemic? Evidence of Economic Efficiency Measures

  • Kekoura Sakouvogui and Mama Genevieve Guilavogui
From the journal Open Economics


Due to the current lockdown and restrictions related to the COVID-19, U.S. commercial and domestic banks are facing cashflow and financial difficulties. This has led to many vulnerable customers losing their source of income. In this paper, we examine the importance of financial liquidity and solvency on U.S. commercial and domestic banks’ efficiency during the COVID-19. This paper adopts the Data Envelopment Analysis’ estimator in a two-step procedure. First, economic efficiency measures of 16,830 December quarterly observations of U.S. commercial and domestic banks are estimated from December 2010 to December 2020. Within each year, 1,530 U.S. commercial and domestic banks are selected. Second, using Tobit and panel fixed effect regression models, the importance of both liquidity and solvency risks on economic efficiency during the COVID-19 is examined. Empirical estimates indicate that both liquidity and solvency financial factors negatively affect the economic efficiency measures of U.S. commercial and domestic banks during the COVID-19.

JEL Classification: C01; C18; C52; Q11

1Mathematical Statistician at the United States Census Bureau. The views set forth are those of the authors and do not indicate concurrence by the United States Census Bureau nor the Department of Commerce.

2A former Financial Research Assistant at the International Organization for Migration. The views set forth are those of the authors and do not indicate concurrence by the International Organization for Migration.


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Received: 2021-09-05
Accepted: 2022-01-24
Published Online: 2022-04-26

© 2022 Kekoura Sakouvogui et al., published by De Gruyter

This work is licensed under the Creative Commons Attribution 4.0 International License.

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