This article examines the loan rate-setting behavior of German banks for a large variety of retail and corporate loan products. We find that a bank’s operational efficiency is priced in bank loan rates and alters interest-setting behavior. Specifically, we establish that a higher degree of...

German Abstract: In den vergangenen, durch Krisen behafteten Jahren sind die Risikomanagementsysteme der Banken vermehrt in den Fokus der Öffentlichkeit gerückt. In ihren Risikoberichten informieren Banken über eingegangene Risiken, die Methoden zur Messung und Steuerung der Risikopositionen...