, populations are shrinking and ageing at the same time. This paper explores the impact of demographic change on the banking …, allows us estimating the socio-demographic determinants of retail profitability. Using a simulation model, we are able to … predict the development of bank profitability due to demographic shifts up to 2025. One of the main findings is that the …

about the pass-through of monetary policy. On the one hand, negative rates could lead to declining bank profitability making …

, complementary channel: risk taking. We model banks’ portfolio choice under moral hazard and emphasize the ‘incentive function’ of … equity. We find that (i) an allowance for corporate equity (ACE) and a lower tax rate discourage risk taking and offer … and deposit insurance influence the risk-taking effects of taxation …

risk of firm default …

This paper considers a simple model of credit risk and derives the limit distribution of losses under different … results obtained indicate that if firm-specific risk exposures (including their default thresholds) are heterogeneous but come … from a common parameter distribution, for sufficiently large portfolios there is no scope for further risk reduction …

This paper examines the impact of the global financial crisis on the banking sector in the Middle East and North Africa … (MENA) region, as well as the main determinants of the profitability of both domestic and foreign banks. The empirical … profitability, size does not appear to play a role, whilst the liquidity ratio and net interest revenues seem to have a negative and …

these patterns. Initially, as there is uncertainty about the reliability of the trading partner, payment risk is a key …

reducing the risk of trade transactions. This paper employs banking data from the U.S. to document new empirical patterns … intermediate levels of risk. Moreover, they rely more on this instrument in times when funding is cheap and aggregate uncertainty … is high. However, firms do not respond uniformly to changes in global interest rates and risk. Those that ship to high …

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that … make external financing costly, the optimal contract between shareholders and employees involves some degree of risk … to rationalize with incentive theories of bonus pay - but support an important risk sharing motive. In particular …

, in which sovereign risk is limited through diversification and some form of seniority. These assets would be held by …