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 …

competition in lending does not seem to have reduced Finnish banks’ profitability, which was at a record high in 1999 and in the … 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 …

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 … 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 …