This paper studies the impact of US interstate bank branching deregulation on school finance and student achievement, leveraging the deregulation as a state tax revenue shock. Total revenue and expenditure increase following the deregulation. The revenue increase stems mainly from higher state...

On March 9, 2023, Silicon Valley Bank's (SVB) stock fell 60% while customers withdrew $42 billion in deposits in the largest ever bank run. One of the underlying culprits was massive losses in SVB's long-term treasury holdings, much of which was categorized as held-to-maturity (HTM), a...

This study examines effects of mergers between Austrian banks from 2005 to 2018. Using matching techniques, we assess consequences for bank profitability and financial efficiency, as well as the impact on loan growth and a measure of social efficiency. Significant effects are observed in naive...

The study examines the effect of bank recapitalization and dividend policies on the financial sustainability of rural and community banks (RCBs) in Ghana. Data from 135 RCBs from 2011 to 2020 revealed an average financial sustainability index of 0.525 over the past decade, suggesting that RCBs...

Although small and medium-sized enterprises (SMEs) contribute considerably to Germany's carbon emissions, regional savings and cooperative banks - SMEs' most important financiers - hardly consider this aspect in lending to these businesses. However, given Germany's commitment to climate...

US Interstate bank deregulation during the 1980s and 1990s led to larger, nationally diversified banks, and a decline in the number of local community banks. Economic theory suggests that community banks may have a greater incentive, but a lower capacity, to lend to a region following a...

This study provides direct evidence of the value to banks arising from relationship lending by estimating the market premium placed on banking organizations' small business loan portfolios. Using data from the small business loan survey contained in the June bank Call Reports, we find that small...

The decline in cash use and growing use of digital distribution for retail banking leads to a reduced need for bank branches. Lending to small and medium sized firms (SMEs) has not benefited as much from a digital transformation, and widespread branch closures may reduce their supply of credit....

This study examines loan loss provisions following top executive turnovers in Japanese banks. The study differentiates between voluntary and forced turnover and inside and outside succession. The results show that incoming top executives, following forced turnover or outside succession, tend to...

To determine how much further the regional bank stocks could fall before reaching equilibrium, we look from February 28, 2023, to April 30, 2023, at a sample of 300+ regional banks that experienced a nearly 25% reduction in Market-to-Book ratios using our Valulytics® bank valuation model. We...

This study investigates the role of local small and medium-sized banks in stabilizing the local economy and assesses whether higher levels of local government debt hinder this effect. Using panel data on local small and medium-sized banks and local government debt from 31 Chinese provinces...

Die aktuelle Krise einiger amerikanischer und europäischer Banken löst zwangsläufig Befürchtungen aus, dass eine internationale Bankenkrise zu einer neuen Finanzkrise führen könnte. Doch sind die Vorzeichen im Jahre 2023 ganz andere als im Jahre 2007/2008. Anders als vor 15 Jahren wirkt...

This paper uses a simulation model to evaluate the effects of river flooding events occurring within Germany on regional' banks. Under a 1.5℃ increase in temperature, the impact is overall rather small, even accounting for the devaluation of loans exposed to floods. However, under a 3℃...

This paper analyzes how small-firm employment responds to labor productivity risk. We use highly granular data about firms employing workers whose productivity depends on the weather. This allows us to analyze the effects of exogenous fluctuations in labor productivity risk, induced by weather...

Using weekly confidential data from U.S. banks, we document an unprecedented flight to safety of deposits from regional banks towards large banks in the early 2023. We show that large banks experienced large deposit inflows relative to small and regional banks and that these differences remain...

This Study examines the impact of local bank structures on the expansion of foreign banks by combining data from China and theory analysis of domestic and foreign bank competition. Results show that when foreign banks face banking structures with a higher proportion of banks with low funding...

During the 2010s, the number of community banks in the United States declined by almost one-third, a trend that has worried many stakeholders including communities losing their primary bank, regulators, and the industry itself. This paper provides evidence that the disappearance of community...

How does small-firm employment respond to exogenous labor productivity risk? We find that this depends on the capitalization of firms' local banks. The evidence comes from firms employing workers whose productivity depends on the weather. Weatherinduced labor productivity risk reduces this...

This paper studies empirically the relationship between competition and risk taking in banking markets. We exploit an unique dataset providing information about all bank loans to Norwegian firms over several years. Rather than relying on observed market shares, we use the distance between bank...