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This paper analyses the effect of bank profitability on economic growth. While policymakers have shown major concerns for low levels of bank profitability, there are no empirical studies on the growth effects of bank profitability. To fill this gap, we investigate the impact of bank...
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, the paper bridges the gulf between (1) the banking literature that studies moral hazard effects of bank regulation without …
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between the risk-incentives literature in banking that ignores the microeconomics of production and the production literature …
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