Why do banks fail? An investigation via text mining
AbstractThis study aims to investigate the material loss review published by the Federal Deposit Insurance Corporation (FDIC) on 98 failed banks from 2008 to 2015. The text mining techniques via machine learning, i.e. bag of words, document clustering, and topic modeling, are employed for the invest...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-10-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2251272 |
| _version_ | 1797693901724712960 |
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| author | Hanh Hong Le Jean- Laurent Viviani Fitriya Fauzi |
| author_facet | Hanh Hong Le Jean- Laurent Viviani Fitriya Fauzi |
| author_sort | Hanh Hong Le |
| collection | DOAJ |
| description | AbstractThis study aims to investigate the material loss review published by the Federal Deposit Insurance Corporation (FDIC) on 98 failed banks from 2008 to 2015. The text mining techniques via machine learning, i.e. bag of words, document clustering, and topic modeling, are employed for the investigation. The pre-processing step of text cleaning is first performed prior to the analysis. In comparison with traditional methods using financial ratios, our study generates actionable insights extracted from semi-structured textual data, i.e. the FDIC’s reports. Our text analytics suggests that to prevent from being a failure; banks should beware of loans, board management, supervisory process, the concentration of acquisition, development, and construction (ADC), and commercial real estate (CRE). In addition, the primary reasons that US banks went failure from 2008 to 2015 are explained by two primary topics, i.e. loan and management. |
| first_indexed | 2024-03-12T02:50:22Z |
| format | Article |
| id | doaj.art-779ba25f8c174d978704e3587d0ae583 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-12T02:50:22Z |
| publishDate | 2023-10-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-779ba25f8c174d978704e3587d0ae5832023-09-04T05:09:43ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-10-0111210.1080/23322039.2023.2251272Why do banks fail? An investigation via text miningHanh Hong Le0Jean- Laurent Viviani1Fitriya Fauzi2The Business School, RMIT University, Ho Chi Minh, VietnamCentre de Recherche en Economie et Management (CREM), University of Rennes 1, Rennes, FranceThe Business School, RMIT University, Ho Chi Minh, VietnamAbstractThis study aims to investigate the material loss review published by the Federal Deposit Insurance Corporation (FDIC) on 98 failed banks from 2008 to 2015. The text mining techniques via machine learning, i.e. bag of words, document clustering, and topic modeling, are employed for the investigation. The pre-processing step of text cleaning is first performed prior to the analysis. In comparison with traditional methods using financial ratios, our study generates actionable insights extracted from semi-structured textual data, i.e. the FDIC’s reports. Our text analytics suggests that to prevent from being a failure; banks should beware of loans, board management, supervisory process, the concentration of acquisition, development, and construction (ADC), and commercial real estate (CRE). In addition, the primary reasons that US banks went failure from 2008 to 2015 are explained by two primary topics, i.e. loan and management.https://www.tandfonline.com/doi/10.1080/23322039.2023.2251272text miningUS failed bankBoWk-meanstopic modelinghierarchies clustering |
| spellingShingle | Hanh Hong Le Jean- Laurent Viviani Fitriya Fauzi Why do banks fail? An investigation via text mining Cogent Economics & Finance text mining US failed bank BoW k-means topic modeling hierarchies clustering |
| title | Why do banks fail? An investigation via text mining |
| title_full | Why do banks fail? An investigation via text mining |
| title_fullStr | Why do banks fail? An investigation via text mining |
| title_full_unstemmed | Why do banks fail? An investigation via text mining |
| title_short | Why do banks fail? An investigation via text mining |
| title_sort | why do banks fail an investigation via text mining |
| topic | text mining US failed bank BoW k-means topic modeling hierarchies clustering |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2251272 |
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