Foreign banks play a large role in the loan sales market. We examine this role using individual bank data on foreign-owned banks in the United States. We find that the motives for loan sales and purchases differ between U.S. and foreign-owned banks and between foreign banks of different regions. The evidence is consistent with foreign banks' using the market for diversification. clevelandfed.or...

The merger of banks is one of the methods for reforming the structure of banks, which has attracted Iranian banking policymakers in recent years. In the process of merging, paying attention to its effects can help to integrate banks. In Iranchr('39')s banking network, financing of production is one of the main concerns of banking policymakers. Therefore, it is important to study the effect of b...

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...