We test whether income from nontraditional banking activities contributed to the failures of
hundreds of US commercial banks during the financial crisis. Estimates from a multi-period …

It is widely believed that diversification at financial institutions benefits the stability of the
financial system. This paper shows that it also entails a cost: even though diversification …

Using data for more than 200 banks from 21 OECD countries for the period 2002–2008, we
examine the impact of bank regulation and supervision on banking risk using quantile …

Over the last decade or so, addressing financial instability has become a policy priority.
Despite the efforts made, policymakers are still a long way from developing a satisfactory …

We analyze how the structure of executive compensation affects the risk choices made by
bank CEOs. For a sample of acquiring US banks, we employ the Merton distance to default …

A main cause of the crisis of 2007–2009 is the various ways through which banks have
transferred credit risk in the financial system. We study the systematic risk of banks before …

The recent financial crisis has focused the attention of scholars and policymakers on how to
improve financial stability through better macro‐prudential regulation and supervision. In this …

We review the banking literature with the view of identifying systemic externalities arising
from bank failures. We are particularly interested in how such externalities may depend on …

This second edition of The Industrial Organization explores the study of the structure of
individual banks, banking markets, and their interactions. The book has the same two key …

Exploiting staggered interstate banking deregulation as exogenous shocks to bank
geographic expansion, we examine the causal effect of geographic diversification on …