SSRN Electronic Journal • 2026
Bank Size and Capital Adequacy During Financial Crises: Evidence from U.S. Commercial Banks (2006–2009)
This study investigates the relationship between bank size and capital adequacy during the 2006–2009 global financial crisis using data from U.S. commercial banks. Using panel data from FDIC reports and ordinary least squares (OLS) regression, it identifies a statistically significant negative relationship between bank size and capital adequacy, indicating that larger banks typically operated with relatively lower capital buffers during the crisis. These results provide empirical support for the 'too-big-to-fail' hypothesis.