Article history: Received 18 September 2014 Received in revised form 24 September 2014 Accepted 15 October 2014 Available online 20 October 2014 This paper investigates product-specific scale economies of banks with respect to off-balance sheet operations. The cost benefits from the non-separability of outputs available to banks that imply the role of OBS activities on bank scale economies are ...

We assess the impact of the geographic expansion of bank assets on the cost of banks’ interestbearing liabilities. Existing research suggests that expansion can both intensify agency problems that increase funding costs and facilitate risk diversification that decreases funding costs. Using a newly developed identification strategy, we discover that the geographic expansion of banks across U.S....

Banks as financial intermediaries, can diversify their credit portfolios into different sectors. This study aims to determine the effect of portfolio diversification on risks borne and returns earned by banks. The sample in this was 61 conventional commercial banks Indonesia for 2012-2014 period with a total 112 observations. results show that has significant negative bank risk return. In other...

This paper examines which business choices are more likely to increase the profitability and distance distress of banks, whether changing model pays off. We find that with use customer deposits equity, decrease size; also, top performers tend have a high relationship banking orientation and/or operate retail focused model. Furthermore, we document income diversification only bears positive impa...

Malaysia, as a small and developing country, must reduce carbon emissions because the country is one of the top CO2-emitting countries in the ASEAN region. Therefore, the current study implements two environmental tax policies; carbon and energy taxes, in order to examine the impacts of these policies on the reduction of carbon emission in the whole of the economy by applying a compu...

This paper examines the foreign financial institutions‟ spillover effects in China‟s banking sector through three channels, foreign strategic investment, employee turnover, and competition using qualitative analyses and quantitative analyses. Through comparing Chinese banks performance between preand postforeign strategic investment, and the OLS regression analyses, we found that the foreign st...

The literature analysing efficiency of financial institutions has enveloped rapidly over the last years. Most studies have focused on the input side analysing input technical and cost efficiency. Only few studies have examined the output side evaluating output technical and revenue efficiency. We know that both sides are relevant when evaluating efficiency of financial institutions. Therefore t...

In contrast to the U.S. where universal banking has been legally prohibited, the Second Banking Directive allows European banks both to form financial conglomerates and hold equity stakes in non-financial companies. This paper analyzes the cost and profit efficiency of European financial conglomerates and universal banks. We find that conglomerates are more revenue efficient than their speciali...