We decompose the change in banks' net interest margin into a change in market-wide bank rates and a change in the … down into different maturities, creditors and borrowers and degrees of liquidity are as follows: (i) Changes in bank rates …-sheet compositions. (ii) Changes in bank rates and changes in balance-sheet compositions affect the change in the net interest margin …

transformation seem to account for a much smaller share (about 20%) of the median bank's net interest margin. …

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 …