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. …

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 … local banks. We find evidence that banks’ investments in branch networks and human capital (personnel) contribute to …

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

. There are two competing banks in the model, and payment services offered to the public are among their main products. The … investment depends critically on the pricing of payment services. If banks offer payment services free of charge, their …

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 … of the relative health of community banks on economic growth and investigating potential transmission mechanisms for …

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 …

This paper presents evidence on the impact of managers on cost efficiency in banking. Stochastic frontier analysis is …. University education enhances efficiency if the manager is running a large bank. Managing director changes are systematically … followed by efficiency changes. Manager retirement typically causes an efficiency improvement, whereas other manager changes …

dominant ‘big four’ state-owned banks. This paper seeks to help predict the effects of this change by analysing the efficiency … of virtually all Chinese banks in the years 1994–2003. Our findings suggest the big four banks are by far the least … efficient and foreign banks the most efficient while minority foreign ownership is associated with significantly improved …

Recent cross-country comparisons of bank efficiency have been based on pooled estimates of banks across countries and … have typically assumed a common frontier and that differences in performance among banks are primarily due to disparities … efficiency of banks in each country that operate both within and outside their own environments. The results indicate that …