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Abstract
This studys findings could identify important signals that could promptly warn of an impending bank failure by sustainable growth paradigm and seemingly unrelated regression (SUR). The sustainable growth model provides us with a linkage between bank growth and corresponding financial performance indicators (profit margin, earning retention, asset turnover, and financial leverage). These signals could identify specific areas of concern that need to be more carefully monitored and/or plans or strategies modified for the sake of averting economic failures or disasters. Moreover, this study conducts its SUR analysis on two banking classifications: agricultural and non-agricultural banks (as classified using the FDIC criterion). The results indicate that, compared with non-agricultural banks, agricultural banks have a higher profit margin, lower earnings retention ratio and the same asset turnover rate and lower financial leverage. Agricultural banks have a higher sustainable growth rate, but also experience constrained actual revenue growth during the recession.