profitfunction. Using the distance function to compute banks’ profitability, we take the distance to the frontier of best practices …

Traditional theory suggests that higher bank profitability (or franchise value) dissuades bank risk-taking. We … highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take … risk on a larger scale, inducing risk-taking. This effect is more pronounced when bank leverage constraints are looser, or …

governmen-owned bank mergers. We compare forced to voluntary bank exits and show that the former cause better bank profitability …We test whether limited market discipline imposes exit barriers and poor profitability in banking. We exploit an … and efficiency at the expense of riskier financial profiles. Regarding real effects, firms exposed to forced bank mergers …

minimum standard is unlikely to exhibit adverse consequences for credit supply and bank profitability. … profitability of German banks and their capacity to lend. With a NSFR-model that is partially calibrated against reported NSFRs, we …