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generate very high costs, but on the other hand it protects against insolvency. That’s why a bank needs to find the ‘Gold mean … study is identification of interdependencies between bank risk capital and effectiveness of the aggregated Eurozone banking … positive correlation between profitability and size of bank risk capital. To verify the hypothesis regression models were used …
Persistent link: https://www.econbiz.de/10012796224
This research intends to explore the relationship between capital buffer, nominator effect, denominator effect, and economic growth for large insured commercial banks of the USA. The study applied a two-step system Generalized Method of Moment (GMM) framework by taking the unique and...
Persistent link: https://www.econbiz.de/10012520242
Applying the real options valuation to measure merger and acquisition (M&A) synergy is highly debatable, with questions arising from the usefulness of this approach in real-world settings. Understanding the full benefits (and possible limits) of real options applications to measure synergy in...
Persistent link: https://www.econbiz.de/10012628071
We evaluated the effects of the bank levy (BL) on the profitability of commercial banks and the balance sheet … or shift assets among different locations or entities to decrease the bank levy. The research findings also showed that …
Persistent link: https://www.econbiz.de/10012605937
In this paper, we study how the interbank market could impact deposit competition and bank profits. We first document … interbank market will lead to a decline in NIM and bank profits. Our results indicate that the interbank market can facilitate …
Persistent link: https://www.econbiz.de/10013273397
Bank of India (RBI). Weak banks cause instability in the financial system, triggering depositor runs. While several studies … bank. The PCA framework introduced in December 2002 marked a paradigm shift in the RBI's supervision mechanism. At its … situation, the bank has to operate under constraints imposed on expansion, managerial compensation, raising deposits, and …
Persistent link: https://www.econbiz.de/10013273706
, to capture market power, and the data enveloped analysis technique to measure bank performance, our result shows … significant differences in Lerner scores (which represent bank market power) of the two groups of banks. Differences in the Lerner … scores provide evidence of a group of strong banks that is isolated from other banks. This implies that this strong bank …
Persistent link: https://www.econbiz.de/10012792367
One of the controversies of diversification is that it may not be beneficial to banks, as it tends to increase systemic risk. Recent theoretical and empirical work have addressed this problem. We argue, from a theoretical perspective, that this controversy ultimately depends on how risk is...
Persistent link: https://www.econbiz.de/10012484095
reduce significant idiosyncratic operational losses. A systemic risk event that leads to significant losses in a bank holding …
Persistent link: https://www.econbiz.de/10012484192
Consolidation in euro area banking has been the major trend post-crisis. Has it been accompanied by more or less competition? Has it led to more or less credit risk? In all or some countries? In this study, we examine the evolution of competition (through market power and concentration) and...
Persistent link: https://www.econbiz.de/10012302421