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Economic Quarterly

Fall 1994

Were Bank Examiners Too Strict with New England and California Banks?

John R. Walter and Robert M. Darin

During the early 1990s, some accused examiners of being too strict with banks in New England and California, thus contributing to economic difficulties in those regions. When measures of examiner strictness are analyzed, however, no evidence of strictness is found. To the contrary, banks in New England and California seem to have received relatively lenient treatment.

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