The last two decades witnessed fundamental changes in the financial sectors ofindustrialized economies. Deregulation, the removal of entry barriers, the developmentof new financial products and services and technological change continue tospur structural changes in the financial industry. This...

This paper analyzes the determinants of the interest margin of German banks over the period 1995–2007, explicitly addressing differences among different bank groups. We use three empirical models to focus on the following aspects: the time evolution of the interest margin, the average...

We use a compound option-based structural credit risk model to infer a term structure of banking crisis risk from market data on bank stocks in daily frequency. Considering debt service payments with different maturities this term structure assigns a separate estimator for short- and long-term...