the corresponding impact on the bank's profitability and lending behavior. It also seeks to investigate the macroeconomic …

Traditional theory suggests that higher bank profitability (or franchise value) dissuades bank risk-taking. We … highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take … risk on a larger scale, inducing risk-taking. This effect is more pronounced when bank leverage constraints are looser, or …

The net interest margin (NIM) from the traditional intermediation function is pivotal for bank profitability and … solvency. Using a unique cross-country sample on bank internal rating based (IRB) models, we find that the NIM increases when … and higher investment in interest earning assets. Ultimately, IRB models improve the risk-return trade-off of a bank …

We analyze the impact of the Volcker Rule on a bank's earnings and default probability by using a stochastic control … model where the bank maximizes its value by selecting an optimal dividend, recapitalization, and investment strategy. We …

This research aims to investigate whether the stress-testing exercises affect credit supply, banks' profitability and … and non-financial corporates, implying a decrease in banks' profitability. Results support the hypothesis that the … also an adverse impact on the real economy through a temporary decrease in credit supply and profitability. Results are …

This study models the impact of new capital regulations proposed under Basel III on bank profitability by constructing … a stylized representative bank's financial statements. We show that the higher cost associated with a one … scheduled commercial banks, one-percentage point increase in capital ratio can be recovered by increasing the bank lending …

This paper empirically examines the effects of the Federal Reserve's Large Scale Asset Purchases (LSAP) on bank profits …. We use a new dataset on individual LSAP transactions and bank holding company data from the Fed's FRY-9C regulatory …-backed Securities to the Fed (“treatment banks”) experienced economically and statistically significant increases in profitability after …

. We demonstrate that while risk- and non-risk based capital ratios improve bank efficiency and profitability, risk … higher capital ratios is effective in reducing risk and improving the efficiency and profitability of banking institutions …-based capital ratios fail to decrease bank risk. Our results cast doubts on the validity of the weighting methodologies used for …

structural capital efficiency (SCE)) on bank profitability. However, the results show an inverted U-shaped relationship may exist … in the case of VAIC, HCE, and CEE. Also, the positive impacts of VAIC and HCE on bank profitability are true to the case …This study empirically examines the impact of intellectual capital on bank risk-adjusted returns in Vietnam between …