current capital stock and a measure of short-run profitability, where the latter is a state variable which is unobserved to …-2012, and find that both increased short-run profitability and a higher capital stock lowers the exit probability - this effect …

the risk of maturity transformation. First, we show that fluctuations of the future profitability of banks' portfolios … risk. When economic activity is reaching its peak, expected profitability is relatively high and spreads are low; during a … recession expected profitability is relatively low and spreads are high, in line with the time series properties of term spreads …

, 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 … the population reduces the customer base, ageing per se increases profitability as older customers typically generate …

. These findings indicate that profitability concerns, while absent from standard theoretical models of central banking, are …

quantitatively large. Our findings suggest that the profitability gap is partly driven by agency costs which arise if value … communication and travel costs over the last decade, the profitability gap is shown to decline over time. Apart from that, our … profitability gap. We discuss various implications of our findings …