charters from episodes of financial distress, and they also have an incentive to increase risk to exploit the cost … relationship to size requires untangling cost and profit from decisions about risk versus expected return because both cost and … higher levels of risk-taking. Studies of commercial banking cost that ignore endogenous risk-taking find little evidence of …

episodes of financial distress and they also have an incentive to increase risk to exploit the cost-of-funds subsidy of … relationship to size requires untangling cost and profit from decisions about risk versus expected-return because both cost and … higher levels of risk-taking. Studies of banking cost that ignore endogenous risk-taking find little evidence of scale …