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banks seen worldwide. In this study, we focus on the negative side of bank size which relates to monitoring costs. In … particular, we show that the relationship between size and bank's market to book value of assets is contained by the cost of the … manager to directly monitor the borrowers and by the (delegation) cost of the owner to monitor the bank manager. Using a …
Persistent link: https://www.econbiz.de/10012935574
individual bank's productivities at collecting deposits and making loans. We relate these measures to bank market values and find … that variation in deposit productivity explains the majority of cross-sectional variation in bank value. We show that … find evidence of synergies between deposit-taking and lending. Our findings suggest that there is significant heterogeneity …
Persistent link: https://www.econbiz.de/10012934415
profitability. In this study, we examine the impact of capital requirements on the cost of financial intermediation and bank … of financial intermediation and increase bank profitability. The results hold when we use equity to total assets ratio as … on the cost of financial intermediation and bank profitability in Bangladesh. In the empirical analysis, we further …
Persistent link: https://www.econbiz.de/10011669026
bank. This reflects a higher margin/profitability. However, it also shows less efficiency of the intermediation mechanism …. Therefore, there is no difference between banking profitability and efficiency of the intermediation.Novelty - With the same … well as the implications for the affordability and social justice, there is no trade-off between profitability and economic …
Persistent link: https://www.econbiz.de/10012952303
further split the samples of countries on the basis of the median levels of lending and the deposit rate spread, foreign bank …
Persistent link: https://www.econbiz.de/10011527140
This paper uses Bayesian model averaging (BMA) techniques to examine the driving factors of equity returns of U.S. financial institutions. The main advantage of BMA is accounting for model uncertainty. For the period 1986-2010, we fi nd that the most likely model explaining banking sector...
Persistent link: https://www.econbiz.de/10013086863
and Fortis Bank NL in the Dutch retail banking market. The financial crisis delayed the completion of the merger giving …
Persistent link: https://www.econbiz.de/10012268034
show that the revaluations are positively associated with (corporate) bank lending. We then find that keeping the … dependence in the bank cost efficiency rankings constructed with the revaluations being kept or dropped. We relate this … revaluations when estimating bank cost efficiency leads to a misleading conclusion that the credit market is inefficient; we show …
Persistent link: https://www.econbiz.de/10013289130
Persistent link: https://www.econbiz.de/10011407142
The paper revisits the impact of uncertainty on the decision problem of a bank. The bank extends risky loans to private … is endogenized through an information system that conveys public signals about the return distribution of bank loans … raises expected bank profits, but may lead to a higher or lower expected loan volume. Moreover, higher transparency may …
Persistent link: https://www.econbiz.de/10009425842