[...]This article investigates the relationshipbetween asset size and risk at bank holding companiesfrom 1987 to 1993.1 We find that for most of thisperiod, the level of risk at large bank holding companiesdid not differ significantly from that at small bankholding companies. However, we do find...

The moral hazard problem associated with deposit insurance generates the potential for excessive risk taking on the part of bank owners. The banking literature identifies franchise value a firm's profit-generating potential as one force mitigating that risk taking. We argue that in the presence...

What is the relationship between a bank holding company's size and the risk it takes? The authors find that although the level of risk at large and small bank holding companies has not differed significantly, important distinctions exist in the nature of that risk. Historically, large companies'...

The moral hazard problem associated with deposit insurance generates the potential for excessive risk taking on the part of bank owners. The banking literature identifies franchise value -- a firm's profit-generating potential -- as one force mitigating that risk taking. In the presence of...