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In Germany a public discussion on the power of banks has been going on for decades now with the term power having at least two meanings. On the one hand, it denotes the power of banks to control public corporations through direct shareholdings or the exercise of proxy votes this is the power of...
Persistent link: https://www.econbiz.de/10009765356
The analysis highlights the aspects of diversified market structures and of local, low-distance banking as advantageous for financial stability. Heterogeneity protects from uniform market behaviour. Local banking can better overcome the problem of asymmetric information, particular in SME...
Persistent link: https://www.econbiz.de/10012153544
buffers on the profitability and risk behavior of Indonesian commercial banks from 2010 to 2020. The findings reveal that …-taking and prudent risk management to achieve optimal profitability. It underscores the need for banks to prioritize robust risk … management practices and proper capitalization to avoid pursuing profitability at the expense of these critical factors. The …
Persistent link: https://www.econbiz.de/10014503054
Using aggregate balance sheet data from banks across the EU-25 over the period from 1997 to 2005 this paper provides empirical evidence that national banking market concentration has a negative impact on European banks’ financial soundness as measured by the Z-score technique while controlling...
Persistent link: https://www.econbiz.de/10003894737
Bank regulators interfere with the efficient allocation of resources for the sake of financial stability. Based on this trade-off, I compare how different capital requirements affect default probabilities and the allocation of market shares across heterogeneous banks. In the model, banks‘...
Persistent link: https://www.econbiz.de/10013198370
Following the recent and on-going tightenings of capital requirements in response to the financial crisis many experts have predicted a decline in the importance of the banking sector as banks struggle to compete with other providers of financial intermediation. The purpose of our research is to...
Persistent link: https://www.econbiz.de/10012997841
Following the recent and on-going tightenings of capital requirements in response to the financial crisis many experts have predicted a decline in the importance of the banking sector as banks struggle to compete with other providers of financial intermediation. The purpose of our research is to...
Persistent link: https://www.econbiz.de/10012981178
literature. This paper seeks to study the determinants of bank asset quality and profitability using panel data techniques and … allows them to finish with lower levels of NPAs. Further, this study investigates the effect of determinants on profitability …, and establishes that while capital adequacy and investment activity significantly affect the profitability of commercial …
Persistent link: https://www.econbiz.de/10010507831
' profitability was also affected, showing up in lower equity returns. The strongest effects were found for the Dodd-Frank Act …
Persistent link: https://www.econbiz.de/10013081106
This paper analyzes empirically what explains the low profitability of Chinese banks for the period 1997-2004. We find … deposits and for more X-efficient banks. In addition, a less concentrated banking system increases bank profitability, which …'s profitability. We find the same negative influence for China's development banks (so called Policy Banks), which are fully state …
Persistent link: https://www.econbiz.de/10013153549