Since the fiduciary duty of bank management is to maximize bank value and not social welfare, we analytically solve for the liability structure that maximizes the value of a bank leveraged by deposits and subordinated debt. Our analysis offers a perspective on privately-rational bank capital structure and its interaction with regulatory environment. Absent deposit insurance and regulatory closu...

British banking during the period 1860 to 1908 experienced a number of bank failures. For example, between 1880 and 1890 there were 29 bank failures. The failure of a bank not only affects the depositors of that bank but also other banks, their shareholders, the monetary system and general economic stability. The main reason for the latter is the loss in public confidence in the banking system ...

A widely publicized series of mergers has characterized the banking industry in recent years. Shareholder returns from these mergers have often been disappointing. This study finds delays in implementing potential operating savings and realizing benefits of scale economies may be one reason bank mergers have disappointing returns. We analyze a 200 branch network formed in a merger of four banks...

We evaluate links between climate and simulated river bank erosion for one of the world's largest rivers, the Mekong. We employ a process-based model to reconstruct multidecadal time series of bank erosion at study sites within the Mekong's two main hydrological response zones, defining a new parameter, accumulated excess runoff (AER), pertinent to bank erosion. We employ a hydrological model t...

The purpose of this paper is to examine the determinants of the timing of bank failure/merger in 10 Asian countries over the period of 1999-2007 using a multivariate logit model and a split population duration analysis. Apart from bank-specific information, we also focus on the effects of macroeconomic and financial characteristics. The following empirical findings are obtained. First, the resu...