Risk averse bank managers: exogenous shocks, portfolio reallocations and market spillovers

Article Abstract:

A simple banking market model is developed to explain how exogenous shocks to the banking system can effect a reallocation of the bank's portfolio to attenuate the effects of the shock and how this behavior affects other banks in a financial system. This is due to the linkage of each bank to one another through the measure of aggregate quantity of loanable funds. The measure of loanable funds dictate the mix of the bank's investments as well as the competitive pressure it exerts on competitor banks.

Portfolio Management, Research, Financial management

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A note on cost structure and economies of scale in Greek banking

Article Abstract:

A model used to determine the cost framework and scale economies in the Greek banking industry is introduced. Results show that the optimal size at which operating expenses will be at its minimum has not yet been attained by the average Greek bank. However, the optimal size can be achieved by interbank competition. Despite certain technical innovations in the Greek banking system, the overall impact is not substantive on average costs.

Cost (Economics), Costs (Economics)

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Scale economies, bank mergers, and electronic payments: A spline function approach

Article Abstract:

The main reason for growth of large banking firms in the United States is mergers and acquisitions. The importance of using a flexible cost function specification while analyzing economies of scale and estimating cost effect of bank mergers is examined.

United States, Acquisitions & mergers, Mergers, acquisitions and divestments, Company acquisition/merger

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