Altavilla, Carlo; Bochmann, Paul Martin; Ryck, Jeroen De; … - 2021
The cost of equity for banks equates to the compensation that market participants demand for investing in and holding …. Notwithstanding its importance, the cost of equity is unobservable and therefore needs to be estimated. This occasional paper provides … estimates of the cost of equity for listed and unlisted euro area banks using a three-step methodology. In the first step, ten …