Interest rate risk is a major concern for banks because of the nominal nature of their assets and the asset …-liability maturity mismatch. This paper proposes a new way to derive a bank’s interest rate sensitivity, by examining separately the … of a potential loan generally increases. Hence a bank’s lending slack (ratio of loans-in-process to loans-in-place) will …

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 …

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 …