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 …

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 …

, depositors, and regulators in connection with bank insolvency may corrupt banks' credit allocation and monitoring decisions … insolvency has a cathartic effect using a large firm-level dataset and proposing a new indicator to measure the strength of … potential endogeneity which are usually inherent to research into the real economic implications of bank regulation. We find a …

likelihood of bank distress makes banks reduce their on-balance sheet interest rate exposure and simultaneously intensify their …

an inverted U-shaped relationship between capital requirements and bank lending, efficiency, and welfare, with their …This paper studies the impact of bank regulation and taxation in a dynamic model where banks are exposed to credit and … benefits turning into costs beyond a certain threshold. By contrast, liquidity requirements reduce lending, efficiency and …