In recent years, the German banking sector has overcome major challenges such as the global financial crisis and the … banking sector. Interest rates are at historically low levels and may remain at these levels for a considerable period of time …

-offs and write-downs, we examine the impact of loan portfolio sector concentration on credit risk. By controlling for common … risk factors, we separate the bank-specific selection and monitoring abilities from the composition of the loan portfolio …

In this paper, we analyze the impact of banks' non-interest income share on risk in the German banking sector for the … on risk significantly differs depending on banks’ overall business model. More specifically, we show banks with retail …-interest income. Furthermore, they indicate that the impact of non-interest income on risk significantly depends on the activities …

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

retail banking business model. Our results verify a low level of business risk in retail banking, thus confirming the …The recent banking crisis has revealed the existence of strong resiliency factors in the retail banking business model … proposes a new methodology to measure retail banks’ business risk, which is defined as the risk of adverse and unexpected …

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 …

profitability and stability is correlated with the share of their fee and commission income. Notably, we examine whether the effect … on bank profitability differs depending on the type of fee and commission income. Our results support the view that … securities business, also have a higher profitability. The Z-score also correlates positively with the share of securities …

some extent by retail mortgage loans. While results suggest that the profitability of banks is impacted by additional …

We estimate a dynamic structural banking model to examine the interaction between risk-weighted capital adequacy and … regulatory minima. Tighter risk-weighted capital requirements reduce loan supply and lead to an endogenous fall in bank … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure …