We set up a simple theoretical model in which banks with varying degrees of government support are matched with CEOs that have different degrees of overconfidence. The channel through which the matching occurs is the share of bonus payments offered by banks in their profit-maximizing contracts....

Research Questions/Issues: Executive remuneration as a tool of resolving agency problems or as a sign of them has been discussed in the literature for decades. The discussion, however, has been focused on non-financial firms. Bankers’ remuneration has been overlooked until recently. Due to...

Information and communication technologies have changed the working of the banking industry in the last few years. The transformation is expected to quicken their pace in the coming years. The trend towards electronic delivery of products and services is dramatically changing in the financial...

Bankers’ acceptances (BAs) are a form of investment security guaranteed by banks to fund loans to businesses against their credit lines. In Canada, BAs underpin the Canadian Dollar Offered Rate (CDOR), the main benchmark used to calculate floating interest rates in Canada’s derivatives...