For an international sample of banks, we construct measures of a bank's absolute size and its systemic size defined as … size relative to the national economy. We then examine how a bank's risk and return, its activity mix and funding strategy … that a bank's interest cost tends to rise with its systemic size can also in part explain why a bank's rate of return on …

For an international sample of banks, the authors construct measures of a bank's absolute size and its systemic size … defined as size relative to the national economy. They examine how a bank's risk and return, its activity mix and funding … save. The finding that a bank's interest cost tends to rise with its systemic size can also in part explain why a bank …