We develop a model of bank risk-taking with strategic sovereign default risk. Domestic banks invest in real projects … their default risks through purchases of bonds. But, for high debt levels, this influence is lost since bank and government …

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 US 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 …

banks and find no evidence that this shift in the bank business model harms bank profitability. To the contrary, a higher … share of non-traditional bank income is associated with a higher profitability. The increase in profitability does not seem …One of the most dramatic trends in banking since the 1980s has been the secular movement away from core banking and …

This paper analyzes the causal relationship between institutional diversity in domestic banking sectors and bank … stability. We use a large bank- and country-level unbalanced panel data set covering the EU member states' banking sectors … of institutional diversity in the domestic banking sector positively affects bank stability. The positive relationship …

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 …

than US ones. Regarding the consequences of systemic risk, we show that dependence between the banking sector and a wide … range of real sectors is limited. Our results imply that regulators and supervisors should address international bank … dependencies arising from common risk factors, while recessions in real sectors due to bank defaults should be a secondary concern. …

to size, we find that the extent to which banks engage in non-traditional banking activities is also positively related …

We investigate the impact of global and local crises on bank stability in the MENA region and examine the effect of … owning bank subsidiaries in other countries. We consider banks that experienced both types of crises during our sample period …. Our findings highlight a negative impact of the Global Financial Crisis of 2007-2008 on bank stability but, on the whole …