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In recent years, the German banking sector has overcome major challenges such as the global financial crisis and the European debt crisis. This paper analyses a recent development as a particular determinant of the future outlook for the German banking sector. Interest rates are at historically...
Persistent link: https://www.econbiz.de/10011589380
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 …
Persistent link: https://www.econbiz.de/10011541056
Prior literature documents the usefulness of the DuPont disaggregation for predicting firms future profitability …. However, there is a lack of research examining how earnings quality affects forecasts of profitability. This paper explores … whether different earnings quality factors moderate the accuracy of profitability forecasts. This study contributes to the …
Persistent link: https://www.econbiz.de/10010520353
Persistent link: https://www.econbiz.de/10000917059
bank-level can impact aggregate volatility. We find weak evidence for a link between granular banking sector volatility and …
Persistent link: https://www.econbiz.de/10010471853
profitfunction. Using the distance function to compute banks’ profitability, we take the distance to the frontier of best practices … as a measure of profit inefficiency, ie of unexpected losses related to underperformance. In this approach, shifts in the … efficiency frontier induced by adverse shocks to banks’ volumes serve as a measure of business risk. This measure of profit …
Persistent link: https://www.econbiz.de/10010192816
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 …
Persistent link: https://www.econbiz.de/10012020122
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 …
Persistent link: https://www.econbiz.de/10011955613
accounting, during their first (partial) year in charge, (2) incoming CEOs from outside the bank take a larger earnings bath than …
Persistent link: https://www.econbiz.de/10010249661