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 …

German savers are renowned for preferring safe, long-term investments, thus providing patient capital, with bank … heterogeneity depending on banks' governance structures. The announcement of a state guarantee for bank deposits following the …

We analyze the problem of a policy authority (PA) that must decide when to resolve a troubled bank whose underlying … solvency is uncertain. Delaying resolution increases the chance that information arrives that reveals the bank's true solvency … efficient resolution decision following the arrival of information. Providing the bank with liquidity support buys the PA time …

externalities between the two countries arise from cross-border bank ownership. The two countries face (i) a regulatory (super … policies are centralized only when international spillovers from cross-border bank ownership are strong, and banking sectors …

observe provisioning practices before and after disclosure becomes mandatory. Our findings suggest that bank managers use loan … pressure and highlights the role of depositors and public pressure in the monitoring of bank managers. We exploit cross …