could become overly dependent on monetary policy and liquidity sustenance measures provided during deteriorating financial …

dynamic recursive structure. Maximum likelihood estimation and SUR-GLS “Seemingly Unrelated Regressions-Generalized Least …

In this paper we reconsider the formal estimation of the risk of financial intermediaries. Risk is modeled as the … variability of the profit function of a representative intermediary, here bank, as formally considered in finance theory. In turn …, banking theory suggests that risk is determined simultaneously with profits and other bank- and industry-level characteristics …

-characteristics variables namely bank liquidity and bank capitalization (capital adequacy ratio) are also statistically significant in …

instrumental variable estimation technique by correcting for both heterogeneity and endogeneity (correlation between the regressors …