The paper attempts to present empirical evidence on the behavior of bank managers - are they risk neutral and act on behalf of shareholders to maximize profits or risk averse and trade-off profits for risk reduction? The paper examines the bank's choice of financial capital since increasing...

Bank consolidation is a global phenomenon. It may enhance the value of firms in the industry if, for example, it is driven by scale and scope economies, but skeptics often accuse bankers of sacrificing value to build empires. Using data on bank holding companies in the U.S., we find strong...

Earlier studies found little evidence of scale economies at large banks; later studies using data from the 1990s uncovered such evidence, providing a rationale for very large banks seen worldwide. Using more recent data, we estimate scale economies using two production models. The standard...

Earlier studies found little evidence of scale economies at large banks; later studies using data from the 1990s uncovered such evidence, providing a rationale for very large banks seen worldwide. Using more recent data, we estimate scale economies using two production models. The standard...

In recent years banks have had to operate in an increasingly competitive environment. How banks will be affected by the increased competitive pressures depends in part on how efficiently they are run.<p> <p> This paper uses the stochastic econometric cost frontier approach to study efficiency at banks...</p></p>

Loretta Mester outlines the components of reform proposals. She then looks at the empirical research on personal bankruptcy to evaluate the rationale for reforming the system and the effectiveness of proposed changes. ; Also issued as Payment Cards Center Discussion Paper No. 02-02

Over the last decade, the legal and institutional frameworks governing central banks and financial market regulatory authorities throughout the world have undergone significant changes. This has created new interest in better understanding the roles played by organizational structures,...