We present a locational model of banking with two types of private banks, honest and opportunistic, and a state bank that is assumed to be less efficient. Opportunistic banks choose whether to honor their contracts with depositors depending on the probability of contract enforcement. We derive three types of equilibria, which depend on institutional quality: a “low” equilibrium in which private...

This paper examines whether the supervisory objective of strengthening market discipline is compatible with the one of enhancing competitive equality for internationally active banks. This issue is empirically investigated by comparing the determinants of major US and European banks’ subordinated notes and debentures (SND) spreads. Three main results emerge. First, the spread/rating relationshi...

Banks are the financial institutions accepting deposits from the people and lending to the needy people, areas and regions for various purposes. Banking industry can be divided into two types of banks— Islamic and conventional banks. The operations of conventional banks are based on interest (sood/riba) and therefore interest constitutes the main source of earnings of these banks. While on the ...

This paper presents a comprehensive analysis of the preand post-privatization operating performance and stock market performance of privatized banks and rival banks in middleand low-income countries. First, we find that privatization announcements elicit negative abnormal returns for rival banks and that the effects are more pronounced for subsequent tranche sale where the proportion of governm...

According to the nature of their activities, banks are exposed to various types of risks. Hence, risk management is at the heart of financial institutions management. In this study, we intend to summarize the information content of bank financial statements on diverse risks faced by banks and then determine how stock markets react to bank's risk management behavior. The methodology used in this...

Sound ALM practices ensure the stability and liquidity of banks, thus enhancing the profitability. ALM is a mechanism to address the risk faced by banks due to mismatch in assets and liabilities. In the context of India, banking industry is closely monitored and supervised by Reserve Bank of India (RBI). As a part of many norms to ensure the sound banking system, RBI also has come out with the ...

30 Efforts requiring banks to divulge information on their financial condition have a long history. In the early 1800s, some states required banks to file reports of condition with the governor or legislature, arguing the state was a shareholder in the banks and therefore entitled to the information (Robertson 1995). However, the reports contained only broad breakdowns of assets and liabilities...

Measuring performance and determining the key factors of performance have been an important research topic in different sector in recent years. The main goal of this study is to evaluate the performance ranks of the private banks in Turkey due to the fact that performances of private banks are important at the stage of economic growth. In this research, the private banks in Turkey ranked by TOP...