We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the equilibrium price, while traded quantities are determined by means of a...

To protect retail investors from the bail-in rule, we propose that banks should issue subordinated "contractual bail-in instruments", as defined in the BRRD, for an amount (together with Tier1 capital) at least equal to 8% of their liabilities. We support our argument by means of a theoretical...

By lending to SMEs at low geographical distance, banks can realise competitive advantage due to enhanced access to soft information that allows the better screening of firms. As especially regional banks lend at a low distance, the decentralised German banking system is deemed ideal for SME...

Financial ratios are ratios that are used to measure a company’s performance by analyzing its financial records. In light of this claim, this study investigates the effect of IFRS on the financial ratios among seventeen (17) Ethiopian commercial banks. The research hypotheses are addressed by...

This paper examines the role of national culture in the transmission process through which the growth in credit to the private sector can lead to bank stability in 107 countries over 2005 and 2017. We performed the examination using the quantile regression and the dynamic generalised method of...

This paper applied the panel VAR approach and the Impulse Response Functions to investigate the differences in the monetary transmission processes of Islamic and conventional banks using disaggregated bank-level data for Saudi Arabia over the period 2008Q1-2020Q4. Our findings show that: i)...

The financial performance of banks across the globe is of utmost importance to its shareholders, managers, investors, regulators, and the general public. This study therefore investigates the impact of credit risk with focus on non-performing loans on the financial performance of commercial...