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portfolio production that was estimated for a sample of highest-level U.S. bank holding companies in Hughes, Lang, Mester, and … experience clear gains in their financial performance, but society also benefits from the enhanced bank safety that follows from …
Persistent link: https://www.econbiz.de/10005838120
method, and a number of bank, market, and regulatory characteristics. We review the existing literature and provide new …
Persistent link: https://www.econbiz.de/10005838135
Great strides have been made in the theory of bank technology in terms of explaining banks' comparative advantage in … theories to analyze the particular environment of banking. In recent years, the empirical modeling of bank technology and the … measurement of bank performance have begun to incorporate these theoretical developments and yield interesting insights that …
Persistent link: https://www.econbiz.de/10010266363
We investigate the sources of recent changes in the performance of U.S. banks using concepts and techniques borrowed from the cross-section efficiency literature. Our most striking result is that during 1991-1997, cost productivity worsened while profit productivity improved substantially,...
Persistent link: https://www.econbiz.de/10005794283
We provide evidence on the costs and profitability of relationship lending by banks. We derive bank-specific measures … rates, and then estimate cost and profit functions to examine how smoothing affects bank costs and profits.<p> <p …-term contract between a bank and its borrower, while loan rate smoothing in response to an interest rate shock is. …
Persistent link: https://www.econbiz.de/10005742706
Our research as well as that by other authors has found scale economies at all sizes of banks and the largest scale economies at the largest banks – that is, larger banks are able to provide products at lower average cost than smaller banks. While the earlier literature found that scale...
Persistent link: https://www.econbiz.de/10011416928
, the paper bridges the gulf between (1) the banking literature that studies moral hazard effects of bank regulation without … the microeconomics of bank production without explicitly considering how banks' production decisions influence their … bank managers cost minimization versus value maximization are estimated using U.S. data on highest-level bank holding …
Persistent link: https://www.econbiz.de/10011576401
We argue for a shift in the focus of modeling production from the traditional assumptions of profit maximization and cost minimization to a more general assumption of managerial utility maximization that can incorporate risk incentives into the analysis of production and recover value-maximizing...
Persistent link: https://www.econbiz.de/10011576770
promoting bank safety and soundness. The Bank for International Settlements contends that market discipline imposes strong … potential losses from their risk exposures. Using 2007 and 2013 data on top-tier, publicly traded U.S. bank holding companies …
Persistent link: https://www.econbiz.de/10011582019
We consider how size matters for banks in three size groups: small community banks with assets less than $1 billion, large community banks with assets between $1 billion and $10 billion, and midsize banks with assets between $10 billion and $50 billion. To illustrate the differences between...
Persistent link: https://www.econbiz.de/10012005710