In this paper we reconsider the formal estimation of the risk of financial intermediaries. Risk is modeled as the … variability of the profit function of a representative intermediary, here bank, as formally considered in finance theory. In turn …, banking theory suggests that risk is determined simultaneously with profits and other bank- and industry-level characteristics …

In this paper we reconsider the formal estimation of the risk of financial intermediaries. Risk is modeled as the … variability of the profit function of a representative intermediary, here a bank, as formally considered in finance theory. In … turn, banking theory suggests that risk is determined simultaneously with profits and other bank- and industry …

In this paper we reconsider the formal estimation of the risk of financial intermediaries. Risk is modeled as the … variability of the profit function of a representative intermediary, here a bank, as formally considered in finance theory. In … turn, banking theory suggests that risk is determined simultaneously with profits and other bank- and industry …

In this paper we reconsider the formal estimation of the risk of financial intermediaries. Risk is modeled as the … variability of the profit function of a representative intermediary, here a bank, as formally considered in finance theory. In … turn, banking theory suggests that risk is determined simultaneously with profits and other bank- and industry …

of size, liquidity and capitalization, the results are mixed. Size is found to be a relevant characteristic … to monetary policy signals. Liquidity and the traditional measure of capital, on the other hand, are found to be weaker …