College) gave the SUERF 2015 Annual Lecture on Capital and Banks. The conference focused on core aspects of banking reform …: the amount of capital required, the design of capital requirements (complexity versus simplicity), proportionate …

the proprietary bank-to-bank European interbank dataset extracted from Target2 and also exploit the Lehman and sovereign …

We examine the role of bank balance sheet strength in the transmission of financial sector shocks to the real economy … bank credit. We find that banks with strong balance sheets were better able to maintain lending during the crisis. In … credit more than other banks. However, higher levels of better-quality capital mitigated this effect. Our results suggest …

We investigate the consistency of efficiency scores derived with two competing frontier methods in the financial … banks and analyze whether efficiency measures yield consistent results according to five criteria between 1993 and 2004 … important to avoid misinterpretation about the status of efficiency of the total banking sector. Finally, despite ongoing …

Efficiency is considered a key factor when evaluating a bank's performance. Moreover, efficiency enhancement is an … explicit policy objective in the Single Market Directive of the European Commission. But efficiency improvements may come at … the expense of deteriorating bank profits and excessive risk-taking. Both the quantitative effects and dynamic reactions …

We analyze the stability of efficiency rankings of German universal banks between 1993 and 2004. First, we estimate … traditional efficiency scores with stochastic cost and alternative profit frontier analysis. Then, we explicitly allow for … different risk preferences and measure efficiency with a structural model based on utility maximization. Using the almost ideal …

efficiency comparisons across different samples. We use a latent class stochastic frontier model to estimate simultaneously … multiple technology regimes and group membership probabilities. The latter are conditioned on six bank traits of German banks …. Wir ermitteln die Wahrscheinlichkeit der Gruppenzugehörigkeit (GZW) je Bank in Abhängigkeit von sechs individuellen …

Outright bank failures without prior indication of financial instability are very rare. Supervisory authorities monitor … regarded as troubled to varying degrees before outright closure. But to our knowledge virtually all studies that predict bank … failures neglect the ordinal nature of bank distress. Exploiting the distress database of the Deutsche Bundesbank we …