Search Results
Journal Article
Top performing small banks: making money the old-fashioned way
Although the profitability of U.S. small banks shrank in the 1980s, two percent of these banks remained highly profitable by emphasizing basic banking, namely acquiring low-cost funds and making low-risk investments.
Journal Article
The evolving size distribution of banks
If limiting the size of large banks were considered appropriate to reduce systemic risk, it would be a clear change of direction relative to the long-term evolution of the industry.
Conference Paper
Determinants of small bank acquisition premiums
Journal Article
Location influences community banks' challenges
Journal Article
Historical patterns and recent changes in the relationship between bank holding company size and risk
What is the relationship between a bank holding company's size and the risk it takes? The authors find that although the level of risk at large and small bank holding companies has not differed significantly, important distinctions exist in the nature of that risk. Historically, large companies' diversification advantages were offset by lower capital ratios and the pursuit of risk-enhancing activities. More recently, however, differences between the capital ratios and activities of large and small companies have narrowed. As a result, an inverse relationship between risk and bank holding ...
Speech
Opening remarks at the Global Association of Risk Professionals forum
Opening remarks at the Global Association of Risk Professionals Forum, New York City.
Working Paper
Size, charter value and risk in banking: an international perspective
This paper documents the relationships between bank size and measures of charter value and insolvency risk in a sample of publicly traded banks in 21 industrialized countries for the 1988-1998 period. With the exception of small U.S. bank holding companies, charter values decrease in size and insolvency risk increases in size for most banks in the countries considered. Size-related diversification benefits and/or economies of scale in intermediation are either absent or, if they exist, are more than offset by banks' higher risk taking. Furthermore, banks operating in countries with more ...
Working Paper
The future of small banks
This paper is a report to the Banking Supervision and Regulation Division on research that I conducted on the future of small banks while working in the Division as a Visiting Scholar. In this paper, small banks are identified as those with total assets less than $1 billion. Small banks have an important role in financing economic activity in the U.S., through their loans to small businesses. In addition, the Banking Supervision and Regulation Division of the St. Louis Fed has a vital interest in the future of small banks because most of the staff in this Division are involved in supervising ...