Does Basel compliance matter for bank performance?

Interest rate and output gap: Does central bank credibility matter?

This paper studies the effects of central bank credibility on nominal interest rate and output gap on 17 inflation targeting (IT) developing countries using Instrument Variables (IV) over a period that spans 24 years (1996-2019). In the first stage, using new Keynesian model is obtained “Credibility loss” index to measure the importance of central bank past performance and its deviation from it...

Does Bank Capital Matter for Monetary Transmission?

raditional monetary theory has largely ignored the role of bank equity. Bank-centered accounts of how monetary policy affects the real economy usually focus on the role of reserves and reserve requirements in determining the volume of demand deposits and, in the case of the bank lending channel, bank loans. As Friedman (1991) observed, “Traditionally, most economists have regarded the fact that...

Bank Risk: Does Size Matter?

The size of banks is examined as a determinant of bank risk. A wide range of banks are examined across four regions, including Australia, Canada, Europe and the USA. Four risk metrics are considered including Value at Risk (VaR), Conditional Value at Risk (CVaR, which measures risk beyond VaR), Probability of Default (PD) using Merton structural methodology, and Conditional Probability of Defau...

Bank Size, Compliance Costs and Compliance Performance in Community Banking

ATM Fees: Does Bank Size Matter?

and Richard Kopcke provided helpful comments. The data used in the study were made available by Bank Rate Monitor. Joshua Congdon-Martin and Marie Willard supplied excellent research assistance. The debate on automated teller machine (ATM) fees heated up recently, when voters in San Francisco and Santa Monica approved bans on banks' charging non-customers for using their ATMs. A federal court r...