Previous research on market-based evaluation of deposit insurance premia has modeled the bank as a corporate firm with risky assets and insured liabilities. No attempt was made to analyze explicitly the risk characteristics of bank assets. The purpose of this note is to model bank lending...

Ten years ago, the White Paper on the Completion of the Single Market announced the integration of European banking markets. The purpose of this essay is to identify four public issues that remain to be addressed. Home country control of international banks need to be complemented by host...

Fund transfer pricing (FTP) is fundamental for evaluating the profitability of deposits and loans. Following the global banking crisis, this paper seeks to draw attention to five issues that have been previously ignored: rationing on the interbank market, the creation of a Basel III contingency...

The purpose of the tutorial paper is to present a model to value banks. Three traditional models are summarized briefly first. Next, a 'fundamental' bank valuation model is introduced. Based on sound economics and finance principles, it allows to identify the various sources of value and to...

The bank literature has documented theoretical and empirical evidence of a “diabolic loop” in the sovereign-bank nexus. Banks have a concentrated risk exposure in domestic government bonds. In the European banking union, this has led to a proposal to create European safe bonds, ESBies, which...

The bank literature has documented theoretical and empirical evidence of a “diabolic loop” in the sovereign-bank nexus. Banks have a concentrated risk exposure in domestic government bonds. In the European banking union, this has led to a proposal to create European safe bonds (ESBies)....

Twenty years into the integration of European banking markets, we review the impact on European banks, their customers and regulators. In Section 1, we review the history of European banking integration and the welfare benefits that have accrued to customers. In Section 2, we attempt to better...

Previous research on market-based evaluation of deposit insurance premia has modeled the bank as a corporate firm with risky assets and insured liabilities. No attempt was made to analyze explicitly the risk characteristics of bank assets. The purpose of this note is to model bank lending...

The efficiency of Portuguese banks is evaluated for the period 1990 to 1995. Portugal provides a unique case to study the relative efficiency of new banks, a significant segment of the banking industry, as well as to study the improvement in efficiency overtime following a period of rapid and...