interaction between business cycles and bank behaviour over the past two decades for 26 industrial countries. As expected, profits …

created by unsound loan loss provisioning. This paper investigates how bank provisioning behaviour is related to the business … cycle, using 8,000 bank-year observations from 29 OECD countries over the past decade. Provisioning turns out to be …

created by unsound loan loss provisioning. This paper investigates how bank provisioning behaviour is related to the business … cycle, using 8,000 bank-year observations from 29 OECD countries over the past decade. Provisioning turns out to be …

banks. However if in extreme scenarios the LCR becomes a binding constraint, the interaction of bank behaviour with the …-testing model, which takes into account the impact of bank reactions on second round feedback effects. We show that a flexible …

, diversify, and lower their lending standards. Bank leverage increases shareholder value because maturity transformation … effectively allows banks to borrow against lower interest rates than their shareholders. Bank diversification increases … shareholder value by enabling banks to lever more. When the gains from maturity transformation are passed on to bank customers …

This paper estimates the relation between bank profitability and economic downturns using a theoretical model that … takes into account the bank's lending history as well as amortization and losses on outstanding loans. We focus on total … bank profits and its components: net interest income, other income, and net provisioning plus other costs. Using both …