US bank holding companies: Structure of activities and performance through the cycles

Albert, Stéphane

doi:10.1016/j.irfa.2015.08.002

Cited by 3 publications

(1 citation statement)

References 26 publications

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“…Also, regarding the crisis, DeYoung and Torna () observe that US banks of which commissions are an important income source have been less subject to registrations for “financial distress” or “insolvency” by the FDIC between 2008 and 2010. Consistent with Stiroh and Rumble (), Albert () reports that customer‐oriented financial services support expectations of higher risk‐performance for US BHC, throughout various economic scenarios. To date, only Albertazzi and Gambacorta () investigated the influence of the economic cycle on various earnings components.…”

Section: Related Literature and Research Focussupporting

confidence: 66%

Banks’ earnings: Empirical evidence of the influence of economic and financial market factors

Albert

Alexandre

2018

Rev Financ Econ

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The structure of income is a foremost address within research on banks’ performance, especially with regard to effects on the resilience of banks’ earnings. Indeed, given their central position in the economy, banks shall thrive to generate sustainable earnings and control for their potential volatility. Existing studies mostly consider the weight of non‐net interest income (nonNII) as opposed to the traditional NII income source. Such aggregated nonNII is found to increase earnings risk but more granular studies conflict. We propose an original investigation of the influence of economic and financial conditions on various income types, assuming that performance may actually be driven by both the income structure and external conditions. We focus European banks, which have long been allowed to diversify beyond retail banking. Out of a straight panel framework, we question if the influence of external conditions spreads to earnings components other than credit losses and trading income and if it does allow for diversification benefits among components. We find that each component actually evolves owing to its own equation. Furthermore, effects of single variables may cumulate over different components of earnings (e.g. GDP) or provide with diversification benefits. These effects are all the more important since they are not mitigated by operating expenses. Hence, over a regarded period, banks’ performance depends upon their structure of income and upon volatilities and correlations of influential variables. Besides controlling for ex‐ante volatility, our approach shows that a given structure of income is not necessarily more resilient than others but that selected non‐banking income may support a higher stability of Earnings

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Section: Related Literature and Research Focussupporting

confidence: 66%

Banks’ earnings: Empirical evidence of the influence of economic and financial market factors

Albert

Alexandre

2018

Rev Financ Econ

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Bank performance – what are the main roles of the human capital and asset diversification? Evidence from France

Hemrit,

Kasraoui,

Feidi

2024

EMJB

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PurposeThe aim of this paper is to determine whether the efficiency of banks’ human capital (HC) has moderating effects on the relationship between asset diversification and bank performance over the 2008–2020 period.Design/methodology/approachOur study considers generalized least squares estimation in fixed effects panel.FindingsResults show that banks with higher levels of HC and higher degree of diversification reduce bank profitability and efficiency. The results also depict that the financial stability-reducing effects of Income diversification decrease as bank HC efficiency increases. At the same time, the effects of income and asset diversity on financial stability change depending on the performance aspect.Originality/valuePrevious research on banks’ performance is concentrated on asset diversification. This article broadens to the HC, Asset diversification and the moderating effects of the profitability, stability and efficiency of French Banks.

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Banking, Not Banking and the Valuation of Banks

Albert

2016

SSRN Journal

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US bank holding companies: Structure of activities and performance through the cycles

Cited by 3 publications

References 26 publications

Banks’ earnings: Empirical evidence of the influence of economic and financial market factors

Banks’ earnings: Empirical evidence of the influence of economic and financial market factors

Bank performance – what are the main roles of the human capital and asset diversification? Evidence from France

Banking, Not Banking and the Valuation of Banks

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