characteristics, such as capital and liquidity. We estimate the new model on the entire panel of US banks, spanning the period 1985q1 … establish that the risk of the relatively large banks and banks that failed in the subprime crisis is higher than the industry …’s average. Thus, we provide a new leading indicator, which is able to forecast future solvency problems of banks. …

information acquisition but not to market power. We also find that managing customers’ money transactions enhances banks ability …Whether or not banks are engaged in ex ante monitoring of customers may have important consequences for the whole … economy. We approach this question via a model in which banks can invest in either information acquisition or market power …

also worldwide. <p> We focus on developments in banks’ profit and loss accounts, balance sheets and the market structure of … sectors using Finnish data. For instance, disintermediation has thus far been moderate in Finland, as the role of banks as … competition in lending does not seem to have reduced Finnish banks’ profitability, which was at a record high in 1999 and in the …

banks that are in trouble through prompt corrective action and if necessary resolving them if their net worth falls to zero …

(PCA) by the authorities in handling problem banks. We initially consider precisely what market discipline means in this …

. There are two competing banks in the model, and payment services offered to the public are among their main products. The … creates a so-called network externality, meaning that many customers prefer to use the large bank for quality reasons. The … investment depends critically on the pricing of payment services. If banks offer payment services free of charge, their …

of the relative health of community banks on economic growth and investigating potential transmission mechanisms for … market shares and higher efficiency rankings for small, private, domestically owned banks are associated with better economic … performance, and that the marginal benefits of larger shares are greater when the banks are more efficient. Only mixed support is …

on European banks is exploited with simulated scale-free networks. The average contagion affected 70% and 40% of European … banks’ total assets in 2007 and in 2010, respectively. Country-level results suggest that French, British, German and … Spanish banks are the most contagious ones, whereas banks from Ireland, Greece and Portugal induce only limited negative …