This paper assesses the impact of the geographic diversification of bank holding company (BHC) assets across the United States on their market valuations. Using two new identification strategies based on the dynamic process of interstate bank deregulation, we find that exogenous increases in geographic diversity reduced BHC valuations. We also find that the geographic diversification of BHC ass...

We provide experimental evidence on coordination within large groups that could proxy the atomistic nature of real-world markets. use a bank run game where two pure-strategy equilibria can be ranked by payoff and risk dominance sequence public announcements introduces stochastic sunspot equilibria. find systematic group size effects theory fails to predict. When payoff-dominant strategy is risk...

The purpose of this research is to examine the effect Islamic leadership and work ethics on employee performance banks in Riau province, whereby organizational culture became mediator variable. This employs Structure Equation Model (SEM) based Partial Least Square (PLS) with help SmartPLS 3.0 M3 software. data were collected by using a questionnaire from 275 respondents. respondent was an Provi...

The phosphate-buffering properties and P chemistry of suspended particulate matter (SPM) collected in three geologically contrasting rivers (Bermejo, Paraguay, and Upper Paraná) are compared in order to explain the abundance of dissolved PO4-P in the Paraná floodplain lakes. The rivers show distinctive P-buffering capacities related to the chemical composition of their SPM. At natural pH, the l...

Since August 1995, Japanese banks have had to pay a premium on Eurodollar and Euroyen interbank loans relative to their U.S. and U.K. competitors. This so-called “Japan premium” provides a market indicator of investor anxiety about the ability of Japanese banks to repay loans. We examine the determinants of the Japan premium and find that events indicating concrete actions by the Japanese gover...

The capital adequacy framework Basel II aims to promote the adoption of stronger risk management practices by the banking industry. The implementation makes validation of credit risk models more important. Lenders therefore need a validation methodology to convince their supervisors that their credit scoring models are performing well. In this paper we take up the challenge to propose and imple...

The validation of probability calibration is an inherently difficult task. We develop a testing procedure for credit-scoring models. The models comprise two components to check whether the ex-ante probabilities support the ex-post frequencies. The first component tests the level of the probability calibration under dependencies. In the long term, the number of events should equal the sum of ass...

We model two dimensions of bank globalization – bank nationality (a bank from the firm’s host nation, its home nation, or a third nation) and bank reach (a global, regional, or local bank) using a two-stage nested multinomial logit model. Our data set includes over 2,000 foreign affiliates of multinational corporations operating in 20 European nations. We find that these firms frequently use ho...

Using monthly balance-sheet data of all major German credit banks, we analyze deposit withdrawals and bank failures in the German banking and currency crisis of 1931. We Þnd that deposit withdrawals were driven by the run on the currency, but were also related to banks’ liquidity positions; that branch banks were no more stable than unit banks; and that large banks were privileged, being bailed...