Previous work suggests that the charter value hypothesis is theoretically grounded and empirically supported, but not universally. Accordingly, this paper aims to perform an analysis of the relations among charter value, risk taking, and supervision that take into account the relations'...

How do foreign banks respond to financial crises? Does their response depend on their organizational form, size, and nationality? Do foreign banks perform better than domestic banks? In this chapter, we address all these questions by examining the performance of banks operating in the Luxembourg...

This paper examines the impact of regulatory reform on the performance of Spanish savings banks. To this end it uses panel data for the period 1986-1995 and a flexible variable profit function that incorporates time-varying technical efficiency. The focus is whether increased competition brought...

This paper investigates the effects of home country banking regulations on the performance of foreign banks in Luxembourg's financial center. We control for the main regulatory indicators, such as capital requirements, private monitoring, official disciplinary power and restrictions on bank...

In recent years, numerous countries around the globe have adopted macroprudential policies. However, the understanding of these policies and how exactly they impact the banking industry remains limited. Using a sample of 1,534 banks from 57 countries, we examine whether and how macroprudential...

This paper analyzes the relation between bank profit performance and business models. To assess the profitability of bank business models, we propose a new approach based on machine learning. In particular, we identify bank business models using balance sheet components’ contributions to...

This paper analyzes the productive differences of banking among countries. It proposes a Malmquist type index that allows intercountry productivity differences to be broken down into pure technological differences and differences due to environmental effects. The most relevant feature of this...

We use a sample of 4,960 observations from 752 publicly quoted commercial banks operating in 87 countries between 1999 and 2006 and estimate cost efficiency and alternative profit efficiency using a global best-practice frontier while controlling for cross-country differences in regulations,...

Recent cross-country comparisons of bank efficiency have been based on pooled estimates of banks across countries and have typically assumed a common frontier and that differences in performance among banks are primarily due to disparities in certain country-specific aspects of banking...