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describe a small amount of the heterogeneity in the business models of banks. Instead, idiosyncratic manager effects that … cannot be explained by observable manager characteristics explain substantial differences in bank policies and risk …. Therefore, most of the variation in the idiosyncratic effects that managers exert on banks is rooted in manager characteristics …
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"The last 30 years have been dramatic for the financial services industry. In the1990s and 2000s, boundaries between the traditional industry sectors, such as commercial banking and investment banking, broke down and competition became increasingly global in nature. Many forces contributed to...
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