curves and an inability to offer deposit rates significantly below zero combine to compress bank earnings in this environment …

This paper assesses the impact of the geographic diversification of bank holding company (BHC) assets across the United … States on their market valuations. Using two novel identification strategies based on the dynamic process of interstate bank …

We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We … first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the … empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for …

We examine the effect of bank capital levels on firm investment drawing on a sample of 11,106 non-financial firms from … 2007 to 2013 in 16 advanced economies. We examine two measures of bank capital adequacy, the Tier 1 ratio and a simple …, suggesting that bank balance sheets and their willingness to extend credit can be an important factor in determining aggregate …

In this paper, we use a bank-level panel dataset to investigate the determinants of bank interest margins in the … extensions to assess the extent to which high spreads of banks in the CCA can be related to bank-specific variables, to … risk, bank size, bank diversification, banking sector competition, and macroeconomic policies; but the impact depends on …

-sided model in which a bank simultaneously lends to a firm and borrows from the short-term funding market. When the bank is …

This paper examines the role of bank capital in decision-making by bank holding companies (BHCs) in the United States …. Following Chami and Cosimano's (2001) call option approach to bank capital, BHCs optimally choose the amount of capital to … insure the bank against becoming capital constrained in the future. We provide empirical support for this model, and find …