Modern US bank failures typically follow government examiners' decisions, study says

By Neil Roland ( November 6, 2026, 21:46 GMT | Insight) -- Modern bank failures typically follow a decision by government supervisors rather than market forces, a US Federal Reserve Bank of New York study said. The staff study, released this week, compared bank collapses between 1865 and 1935, with failures between 2000 and 2023. During the earlier period, bank failure dates were uniformly distributed across weekdays. But since the year 2000, 529 of 557 commercial bank failures — or 95 percent — collapsed on a Friday.Modern bank failures typically follow a decision by government supervisors rather than market forces, a US Federal Reserve Bank of New York study said....

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