This paper empirically analyzes risk shifting in the banking industry. Specifically, we study whether risk shifting took place in the European Union's banking sector in 2002–2009. Taking into account the components of the financial structure of banks, we also identify the type of risk...

This paper analyzes the relation between bank profit performance and business models. To assess the profitability of bank business models, we propose a new approach based on machine learning. In particular, we identify bank business models using balance sheet components’ contributions to...

The share of off-balance sheet activity (OBSa) in the future of banking business has been questioned by the use of low-quality assets in this activity. Nevertheless, this paper puts forward the adverse selection hypothesis, which counter argues that more stable banks engage in OBSa to a larger...

Chapter 1: Introduction -- Chapter 2: Conceptual background: firms’ objectives, decision variables and economic efficiency -- Part I -- Chapter 3: Shephard’s input and output distance functions: cost and revenue efficiency decompositions -- Chapter 4: The generalized distance function (GDF):...