We examine the saving behavior of banks retail customers. Our unique dataset comprises the contract and cash flow information for approximately 2.2 million individual contracts from 1991 to 2010. We find that contractual rewards, i.e., qualified interest payments, and government subsidies,...

This article examines the loan rate-setting behavior of German banks for a large variety of retail and corporate loan products. We find that a bank's operational efficiency is priced in bank loan rates and alters interest-setting behavior. Specifically, we establish that a higher degree of...

This paper studies empirically the determinants of new account fraud risk within two dimensions: the probability of fraud, and the expected and unexpected (monetary) loss-per-account due to fraud. By fraud risk, we mean the risk that a bank fails to enforce a debt because the identity of the...

We survey the recent literature on corporate diversification. How does corporate diversification influence firm value? Does it create or destroy value? While, until the beginning of this century, the predominant thinking among researchers and practitioners was that corporate diversification...

Nachdem die Immobilienkrise in den USA auch Deutschland erreicht und die IKB Deutsche Industriebank AG sowie die sächsische Landesbank Sachsen LB in Schwierigkeiten gebracht hat, werden Forderungen laut, die Banken stärker zu regulieren. Was sind die Ursachen für die Schwierigkeiten der...

Along with the probability of default, the loss given default (LGD) is a crucial variable for the quantification of credit risks. According to the German insolvency law, lessors are allowed to access the leased asset quickly and dispose of it autonomously if the lessee encounters a default. In...

We survey the recent literature on corporate diversification. How does corporate diversification influence firm value? Does it create or destroy value? Until the beginning of this century, the predominant thinking among researchers and practitioners was that corporate diversification leads to an...