The Credit Crisis Around the Globe: Why Did Some Banks Perform Better?

@article{Beltratti2010TheCC,
  title={The Credit Crisis Around the Globe: Why Did Some Banks Perform Better?},
  author={Andrea Beltratti and Ren{\'e} Stulz},
  journal={Banking \& Financial Institutions eJournal},
  year={2010}
}
Though overall bank performance from July 2007 to December 2008 was the worst since the Great Depression, there is significant variation in the cross-section of stock returns of large banks across the world during that period. We use this variation to evaluate the importance of factors that have been put forth as having contributed to the poor performance of banks during the credit crisis. The evidence is supportive of theories that emphasize the fragility of banks financed with short-term… 
Risk Exposure, Liquidity and Bank Performance: New Evidence from the Recent Financial Crisis of 2007–2008
In this paper, we examine the main determinants of stock return performance of 178 large and medium sized banks across the world, during the recent financial crisis of 2007–2008. We test the validity
Essays on finance: Drivers of bank performance and the international cost of equity
This dissertation examines how the way banks function relates to their performance before, during, and after the recent financial crisis in an attempt to understand the causes of that crisis and what
Why Did US Banks Fail? What Went Wrong at US Banks in the Run Up to the Financial Crisis
This paper analyzes the differences between weak and strong US banks prior (2002-2006) to the financial crisis. We define strength as the ability to endure the crisis independently. Weak banks either
Determinants of Bank Profitability in the Euro Area: What Has Changed During the Recent Financial Crisis?
During the recent financial crisis, bank profitability has become an element of strong concern for regulators and policymakers; in fact both self-financing strategies and capital increases –
International Propagation of the Credit Crisis: Lessons for Bank Regulation
The authors use a large sample of non‐U.S. banks to examine the origins and spread of the 2007–2009 crisis. Using both stock market and structural variables, they test whether the effects of the
Bank performance during the credit crisis: evidence from Asia-Pacific countries
ABSTRACT This paper investigates the determinants of the stock performance of small and medium banks across Asia-Pacific countries during the global financial crisis of 2007–2008. We find that small
Financial crisis and bank efficiency: An empirical study of European banks
Abstract This article uses the frontier technique to highlight the differences in the impact of the global financial crisis on the efficiency of 783 commercial banks from the EU during the period
Après le déluge: Institutions, the Global Financial Crisis, and Bank Profitability in Transition
While the determinants of bank profitability have been well-explored, the influence of institutions on bank performance is less understood, especially in the transition context. Given the presence of
...
...

References

SHOWING 1-10 OF 65 REFERENCES
How the Subprime Crisis Went Global: Evidence from Bank Credit Default Swap Spreads
How did the Subprime Crisis, a problem in a small corner of U.S. financial markets, affect the entire global banking system? To shed light on this question we use principal components analysis to
Dividends and Bank Capital in the Financial Crisis of 2007-2009
The headline numbers appear to show that even as banks and financial intermediaries suffered large credit losses in the financial crisis of 2007-09, they raised substantial amounts of new capital,
Bank Owners or Bank Managers: Who is Keen on Risk? Evidence from the Financial Crisis
In this paper, we analyse whether bank owners or bank managers were the driving force behind the risks incurred in the wake of the financial crisis of 2007/2008. We show that owner controlled banks
Bank CEO Incentives and the Credit Crisis
We investigate whether bank performance during the recent credit crisis is related to chief executive officer (CEO) incentives before the crisis. We find some evidence that banks with CEOs whose
Corporate Governance Lessons from the Financial Crisis
This report analyses the impact of failures and weaknesses in corporate governance on the financial crisis, including risk management systems and executive salaries. It concludes that the financial
Bank Activity and Funding Strategies: The Impact on Risk and Return
TLDR
Overall, banking strategies that rely prominently on generating noninterest income or attracting nondeposit funding are very risky, consistent with the demise of the US investment banking sector.
Banking Systems Around the Globe: Do Regulation and Ownership Affect Performance and Stability?
The authors report cross-country data on commercial bank regulation and ownership in more than 60 countries. They evaluate the links between different regulatory/ownership practices in those
Governance and the Financial Crisis
Should boards of financial firms be blamed for the financial crisis' Using a large sample of data on nonfinancial and financial firms for the period 1996-2007, I document that the governance of
Corporate Survival and Managerial Experiences During the Great Depression
We study corporate performance during and after the Great Depression for all industrial firms on the NYSE. Our first goal is to identify the factors that contribute to business insolvency and
Corporate Control, Portfolio Choice, and the Decline of Banking
In the last two decades U.S. banks have become systematically less profitable and riskier as nonbank competition has eroded the profitability of banks' traditional activities. Bank failures,
...
...