The Great Recession focused attention on large financial institutions and systemic risk. We investigate whether large … economies or too-big-to-fail subsidies. Estimating scale economies is made more complex by risk-taking. Better diversification … resulting from larger scale generates scale economies but also incentives to take more risk. When this additional risk …

This thesis applies innovative methods to the efficiency and productivity analysis of the Australian banking system … on industry productivity and the changing nature of banking and the role of risk in measuring bank value-added. The … latter leads to the construction of a new bank production model, emphasising risk management as part of a bank?s value …

requires assessing both efficiency and risk factors, so Laeven also introduces a measure of risk taking. This risk measure … foreign-owned - tended to be heavy risk takers. Most of them had excessive credit growth. - Laeven uses a linear programming … helps predict which banks were restructured after the crisis of 1997. Laeven finds that foreign-owned banks took little risk …