This paper seeks to investigate the determinants of banking network profitability in Iran from 2007 to 2012. The results of our study indicate that both bank-specific factors and macroeconomic factors influence banks’ profitability in Iran. Results confirm that bank profitability is significantly influenced by investment to total assets ratio, non-performing loans to total assets ratio, a...

ABSTRACT Complex disclosures have long been a major source of borrowers’ poor understanding mortgages. We examine the effect simplifying mortgage in difference-in-differences design around significant disclosure rule mandated by Consumer Financial Protection Bureau 2015. find that inexperienced borrowers (first-time home buyers) pay significantly lower interest rates after regulation than exper...

In this paper we construct a modeling for detection of banks which are experiencing serious problems. Sample and variable set of the study contains 30 banks of Iran during 2006-2014 and their financial ratios. Well known multivariate statistical technique (principal component analysis) was used to explore the basic financial characteristics of the banks, and discriminant Logit and Probit models ...

Abstract We show that politically connected banks influence economic activity. exploit shocks to individual banks’ political capital following close U.S. congressional elections. find regional output growth increases when active in the region experience an average positive shock their capital. The effect is economically large, but temporary, and due lower restructuring economy, not increased pr...

The present paper thoroughly explores second-best efficient allocations in an adverse selection insurance economy. We start from a natural extension of the classical model, assuming less than perfect risk perceptions. We propose first and second welfare theorems, by means of which we describe efficiencyenhancing policies. Notions of weak and strong adverse selection are promising for interpreti...

The role of real estate during the global financial and economic crisis has prompted efforts to better incorporate housing channels into macro models, improve develop macroprudential tools, reform system. This article provides an overview major, recent contributions literature in relation earlier research on what drives prices how they affect activity. Particularly emphasized are studies, both ...

Payments systems operate virtually unnoticed in our daily lives and yet are crucial to a wellfunctioning economy and financial system. Because they explicitly link financial institutions, payments systems provide a way to transmit risk within, and between, financial systems. Ideally, payments systems should be designed and operated so as not to add risk in the event of a crisis. The author exam...

This paper proposes an approach to estimate the impact of adverse climatic events on profitability small European banks (LSIs). By considering river flooding phenomena, we construct a unique database matching information location, frequency and severity floods with location balance sheet data institutions mainly operating in areas where they are headquartered (territorial LSIs). We compare perf...