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Journal of Financial Services Research OnlineFirst articles


The Procyclicality of Impairment Accounting: Comparing Expected Losses Under IFRS 9 and US GAAP

In this paper, we aim to compare the cyclical behavior of credit impairments in the P&L account under three accounting regimes: IAS 39, IFRS 9, and US GAAP with the CECL update. Our results show that although IFRS 9 is less procyclical than IAS …

Alejandro Buesa, Javier Población, Javier Tarancón

Open Access 15-03-2023

Does IRS Monitoring Matter for the Cost of Bank Loans?

We show that IRS monitoring exerts a significantly negative effect on the cost of syndicated loans. A one standard deviation increase in the probability of an IRS audit decreases loan spreads by around nine basis points. We also find that this …

Theodora Bermpei, Antonios Nikolaos Kalyvas, Simon Wolfe


An analysis of the potential impact of heightened capital requirements on banks’ cost of capital

We provide new estimates of the association between the level of capital and the cost of capital for US banks by using the implied cost of capital as a measure of the cost of equity and by factoring in the effect of the cost of debt. With the …

Tomas Mantecon, Adel Almomen, He Ren, Yi Zheng

Open Access 22-02-2023

The Impact of Policy Interventions on Systemic Risk across Banks

What is the impact of policy interventions on the systemic risk of banks? To answer this question, we analyze a comprehensive sample that combines an original set of bank-specific bailout events with the balance sheets of key affected and …

Simona Nistor, Steven Ongena


Structural Drivers of Credit Rating Uncertainty: An Examination of the Changes Imposed by Dodd-Frank

We examine credit rating disagreements subsequent to the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). We find that both the rate and magnitude of credit rating disagreements increase following the …

Jun Duanmu, Garrett A. McBrayer


Finance, Growth, and Fragility

We use indicators from the Global Financial Development Database to identify the effects of financial fragility on the finance-growth nexus for the period from 2000 to 2014. Regressions on our cross-country sample show that financial fragility and …

Panicos O. Demetriades, Johan M. Rewilak, Peter L. Rousseau

11-02-2023 | Correction

Correction to: The Covid Pandemic in the Market: Infected, Immune and Cured Bonds

Andrea Zaghini


The Covid pandemic in the market: infected, immune and cured bonds

In this paper, I analyze the developments in the euro-area primary bond market during the Covid-19 pandemic. The most surprising effect is the significant increase in the share of investment-grade bonds from 15% to 40%. Over the first phases of …

Andrea Zaghini


Shareholder Litigation Rights and Bank Dividends

We use the staggered adoption of Universal Demand (UD) laws, which significantly reduces the shareholder litigation rights of listed banks incorporated in 23 US states during the period from 1989 to 2005, as a quasi-natural experiment to examine …

Hiep Ngoc Luu, Tram-Anh Nguyen, Dung Thi Thuy Nguyen, Lan Thi Mai Nguyen, Edie Johari


Banks and FinTech Acquisitions

This paper investigates ex-ante factors influencing international bank acquisition of FinTech companies from 2010–2018. Using hand-collected data, we show that bank boards with a larger female presence as well as those that have CEOs with longer …

Kyung Yoon Kwon, Philip Molyneux, Livia Pancotto, Alessio Reghezza


Multimarket Banks, Local Economic Shocks, and Lending Behavior: When the Effect is on Cost but not on the Amount of Deposit Fundings

We investigate how local deposit shocks affect bank lending in nonaffected markets for the case where banks mostly neutralize that shock. Colombian banks in oil-producing municipalities experienced deposit outflows after the collapse of oil prices …

Davide Castellani, Elisa Giaretta


Low Interest Rates and Banks’ Interest Margins: Does Deposit Market Concentration Matter?

Using a sample of 7,919 banks from 30 OECD countries over 1995–2019, we examine the impact of low interest rates on banks’ net interest margins. Our results confirm a positive relationship between interest rates and interest margins, which is …

Nimrod Segev, Sigal Ribon, Michael Kahn, Jakob de Haan


Are International Banks Different? Evidence on Bank Performance and Strategy

This paper provides evidence on how bank performance and strategies vary with the degree of bank internationalization using data for 113 countries during 2000–15. Bank internationalization is associated with lower valuations and lower returns on …

Ata Can Bertay, Asli Demirgüç-Kunt, Harry Huizinga


Interest Rate Competition among C Banks, S Banks, and Credit Unions

Compared to C corporation banks, S corporation banks and credit unions are considered tax-exempt institutions, with credit unions receiving the greatest tax benefit. Institutions can choose to pass this benefit onto customers in the form of higher …

Edward R. Lawrence, Ca Nguyen, Alejandro Pacheco


Vertical Differentiation, Risk-Taking and Retail Funding

Results of previous studies of the relationship between bank competition and bank risk-taking have differed in findings but most have used the same sort of barriers to perfect competition, such as entry barriers and differences in bank default …

David Jaume, Martin Tobal, Renato Yslas

Open Access 20-10-2022

Option-Implied Skewness and the Value of Financial Intermediaries

In this paper, we analyze the relationship among skewness, value, and stock returns for US financial intermediaries. Further, we compare skewness based on past returns to risk-neutral skewness based on options. We find that the option-implied …

Silvia Bressan, Alex Weissensteiner

Open Access 18-10-2022

Access to Credit in a Market Downturn

Using a unique proprietary dataset from a large European commercial bank containing granular loan-level information on credit lines to mid-corporate firms, we investigate the bank’s decisions to allow firms to retain existing credit at a time of …

Barbara Casu, Laura Chiaramonte, Ettore Croci, Stefano Filomeni


Systemic Risk: Bank Characteristics Matter

We systematically examine the relationship between a bank’s characteristics and its exposure to systemic risk. We find that tier 1 requirements are negatively associated with a bank’s exposure, while size has a positive association. This …

Sharif Mazumder, Louis R. Piccotti


Dynamic Pricing of Credit Cards and the Effects of Regulation

We construct a two-period model of revolving credit with asymmetric information and adverse selection. In the second period, lenders exploit an informational advantage with respect to their own customers. Those rents stimulate competition for …

Suting Hong, Robert M. Hunt, Konstantinos Serfes


Consumer Willingness to Share Payments Data: Trust for Sale?

Using Dutch survey data, we show how consumer willingness to allow access to payments data depends on the type of data user (the consumer’s own bank, another bank, or a Big Tech), financial incentives and trust in the data user. Consumers are most …

Michiel Bijlsma, Carin van der Cruijsen, Nicole Jonker