This paper assesses the impact of the geographic diversification of bank holding company (BHC) assets across the United …

This paper explores the determinants of profitability across large euro area banks using a novel approach based on … conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank … profitability. However, the estimated conditional distributions reveal that, while higher growth would raise profits on average, a …

The paper investigates EU banks' profitability through the recent financial cycle using banklevelbalance sheet and …, such as higher reliance on fees andcommission income, were associated with better profitability post-crisis …

Traditional theory suggests that more profitable banks should have lower risk-taking incentives. Then why did many … to reconcile theory and evidence. In our setup, banks are endowed with a fixed core business. They take risk by levering … core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk …

This paper uses the Growth-at-Risk (GaR) methodology to examine how macrofinancial conditions affect the growth outlook …

systemic banking crises, two to three years ahead. Our analysis indicates that the riskiness of credit allocation is both a …

strengthening of systemic risk assessment and macroprudential policies of the household sector. Other policies include improving the …

This paper predicts downside risks to future real house price growth (house-prices-at-risk or HaR) in 32 advanced and … overvaluation, excessive credit growth, and tighter financial conditions jointly forecast higher house-prices-at-risk up to three … years ahead. House-prices-at-risk help predict future growth at-risk and financial crises. We also investigate and propose …

sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback … explore this causal nexus and the effects of rare large disasters resulting in capital losses and rising risk premia. Our …