How much deposits and equity a bank has influences how a banks’ lending responds to monetary policy. While the responsiveness for the bank lending channel has been well established, this is not the case for the risk-taking channel (RTC). We show in a value-at-risk RTC model that the lending...

Crime and systemic bank crimes are a major threat to Africa’s development. As observed, a larger scale of Africa’s banking growth is seriously affected by growing bank crimes across the continent. This article on contemporary crimes prevalent within Africa’s banking industry and a threat...

The Saudi Central Bank (SAMA) is entrusted with issuing a shariah governance framework for local banks operating in Saudi Arabia.This framework ensures the activation of supervisory regulations on Islamic banking as a first phase, in which SAMA establishes supervisory frameworks for banks that...

This article assesses the predictive power of sell-side stock analysts and credit rating agencies on the prevision of European banks distress events by introducing their respective disclosures into a logit early-warning system. The estimation is performed over the 2000Q3-2020Q1 period. As direct...

Using manually compiled cost of equity (COE) estimates disclosed in takeover regulatory filings, this paper provides novel evidence on how investment banks estimate discount rates. Bank COE estimates have a positive but relatively low correlation with rates implied from the CAPM or Fama-French...

Pursuant to the Dodd-Frank Act, from 2015-2017, banks holding assets between $10 - $50 billion were required to disclose a portion of their company-run stress test results. These disclosures were intended to facilitate market discipline and bank monitoring. In contrast, we find that these...

This study, which follows from our initial assessment of the API economy in banking (Zachariadis and Ozcan, 2017), explores the changes that incumbents and new entrants experienced in the banking sector following the announcement and implementation of open banking and PSD2 in the UK and EU

While there is no apparent reason for loan spreads to cluster at certain numbers, we find that around 70% of bank loans have round-yard spreads (i.e., multiples of 25 basis points). We hypothesize that dominant banks implicitly collude by using the round-yards as focal pricing points when...

This paper investigates how banks with different organizational cultures (defined as either control-dominant, collaborate-dominant, compete-dominant, create-dominant) manage their loan loss provisions (LLPs) in response to intensified industry competition. For identification, we utilise the...

One of the key roles of banks is liquidity transformation, which is also thought to create fragility, as uninsured depositors face an incentive to withdraw money before others (a so-called panic run). Despite large amount of theoretical work, there has not been much empirical evidence...