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This paper empirically examines how capital affects a bank's performance (survival and market share), and how this … effect varies across banking crises, market crises, and normal times that occurred in the U.S. over the past quarter century …. We have two main results. First, capital helps small banks to increase their probability of survival and market share at …
Persistent link: https://www.econbiz.de/10011893182
Banking crises are recurrent phenomena, often induced by excessive bank risk-taking, which may be due to behavioral …
Persistent link: https://www.econbiz.de/10012236849
Persistent link: https://www.econbiz.de/10009765829
, Chinese banks led the global banking profitability ranking through the years from 2008 to 2010 and contributed one fifth of …)). The contradiction of high profitability and low efficiency causes great confusion in understanding banking in China. Our … global banking profits in 2010. The Chinese banking sector, which was deemed as wholly insolvent ten years ago, was reborn …
Persistent link: https://www.econbiz.de/10009486671
The paper examines the long-term profitability of the Italian banking system (1965-2011), which has three interesting … have reached the low levels of previous troughs. In a sense, the Italian banking system seems to be again at square one …. Our analysis shows that the most important driver of profitability has been the decline of the margins since the late 1980 …
Persistent link: https://www.econbiz.de/10013098399
banks' profitability, whereas higher levels of the institutional environment or stricter banking regulation reduces banks …' profitability. The negative effect of the institutional environment and banking regulation was of lower magnitude during the global …This paper empirically examines how banks' dividend policy, the institutional environment, and banking regulation …
Persistent link: https://www.econbiz.de/10012839032
Return on Equity (RoE) is a central measure of performance in the banking industry, which is used to allocate capital … inside and across divisions. The reliance on this metric emerged from the risk management approach to banking which underlies …
Persistent link: https://www.econbiz.de/10012905074
We analyse the impact of standard and non-standard monetary policy measures on bank profitability. For empirical … profitability are asymmetrically affected by accommodative monetary conditions, with a positive impact on loan loss provisions and … higher increase in profitability after a steepening of the yield curve. Finally, we assess the impact of unconventional …
Persistent link: https://www.econbiz.de/10012945753
bank profitability and risk before, during, and after the global financial crisis of 2007-2008. We use a unique hand … presence of excess control rights is associated with lower profitability, higher risk-taking and higher default risk before … (2002-2006) and after (2009-2010) the crisis. Conversely, it improves profitability and no longer affects risk during the …
Persistent link: https://www.econbiz.de/10013077631
We investigate the risk taking incentives of "stressed banks" - the banks that are subject to annual regulatory stress tests in the U.S. since 2011. We document that stress tests effectively encourage prudent investment from stressed banks through regulatory monitoring, but also provide them...
Persistent link: https://www.econbiz.de/10011874856