This study investigates the profit efficiency (PROFEFF) of small banks (those under $500 million in total assets) for 1990–96. Assuming that small banks and large banks use the same production technology, we find, consistent with Berger and Mester [J. Bank. Finance 21 (1997) 875], that small banks are more profit efficient than large banks. Small banks in non-metropolitan statistical areas (non...

Developments in risk-transfer instruments and risk management techniques in the last two decades have fundamentally changed how banks manage their assets and liabilities. In this document we show that, for all three sectors of German universal banks (private commercial banks, savings banks, and cooperative banks), asset-liability dependency declined over the period 1994-2007, the decline was st...

In an earlier paper in this journal (Murphy, 2009), I explained the nature of the financial crisis of 2008 and how the effects of it would be very costly long-term because of the failure of government policies to deal with it effectively. Here I provide an important update and perspective for the future. As I indicated in a brief report published in October 2008 in the Oakland Press (Murphy, 20...

This paper examines the impact of mergers and acquisitions (M&A) on the financial performance of the Nigerian market after consolidation. The authors use data from all Nigerian banks that survived the consolidation between 2001 and 2009. Logistic regression models are structured to determine the influence of M&A activities on the financial performance of the Nigerian market. Also, the authors c...

In Organizations productivity is a vital issue. There are many factors that determine productivity of an organization. Nowadays Employee turnover is one of those which are considered to be one of the difficult issues in business. The effect of intension to leave has received huge attention from top management(senior executives), human resource professionals and other industrial psychologists ha...

The direct banking business is characterized by integrated distribution channel politics and holistic sales approaches combined with multichannel-management. Direct banks in Europe and especially in Germany are currently facing increasing market competition. The crucial factors for growth are product innovation, cost control and the flexibility to react individually to each customer in a rapidl...

Banks are important to national, and even global, economic stability. Banking panics that follow bank insolvency or bankruptcy, especially of large banks, can severely jeopardize economic stability. Therefore, issuers and investors urgently need a credit rating indicator to help identify the financial status and operational competence of banks. A credit rating provides financial entities with a...

This paper examines the impact of mergers and acquisitions (M&A) on the financial performance of the Nigerian market after consolidation. The authors use data from all Nigerian banks that survived the consolidation between 2001 and 2009. Logistic regression models are structured to determine the influence of M&A activities on the financial performance of the Nigerian market. Also, the authors c...

According to the Basel III regulatory framework, uniform minimum liquidity requirements have been imposed on all types of banks. Using an agent-based model of a banking system, we investigate the effects of liquidity requirements on banks' insolvency under two policy experiments in one of which the minimum liquidity requirements are applied uniformly and in the other differentially across banks...

Cooperative banks are an important, and growing, part of many financial systems. The paper analyzes empirically the role of cooperative banks in financial stability. Contrary to some suggestions in the literature, we find that cooperative banks are more stable than commercial banks. This finding is due to much lower volatility of the cooperative banks’ returns, which more than offsets their low...