Microeconometrics of Banking Methods, Applications, and Results Methods, Applications, and Results

This book provides a compendium to the empirical work investigating the hypotheses generated by recent banking theory. Such a compendium is overdue. Since the publication of the The Microeconomics of Banking by Xavier Freixas and Jean Charles Rochet, work in empirical banking has further blossomed, not only in sheer volume but also in the variety of questions being tackled, datasets becoming available, and methodologies being introduced. This book follows the structure in Freixas and Rochet's book and arranges the relevant methodologies, applications, and results according to each of their original chapters in order to have a coherent synthesis between available theory and supporting empirics. Each chapter in Microeconometrics of Banking contains a modest introduction (where possible and appropriate), a concise methodology section with one or more relevant methodologies, and several illustrative applications. In a "muscular" results section the authors summarize the main robust and seminal findings in the literature that are in the text, and provide the details of many other studies in figures and tables.

I.: ; INTRODUCTION; II.: ; WHY DO FINANCIAL INTERMEDIARIES EXIST?; III.: ; THE INDUSTRIAL ORGANIZATION APPROACH TO BANKING; IV.: ; THE LENDER-BORROWER RELATIONSHIP; V.: ; EQUILIBRIUM AND RATIONING IN THE CREDIT MARKET; VI.: ; THE MACROECONOMIC CONSEQUENCES OF FINANCIAL IMPERFECTIONS; VII.: ; INDIVIDUAL BANK RUNS AND SYSTEMIC RISK; VIII.: ; MANAGING RISKS IN THE BANKING FIRM; IX.: ; THE REGULATION OF BANKS; X.: ; CONCLUSION; XI.: ; EPILOGUE: THE BANKING CRISIS OF 2007-2008

Hans Degryse is professor of financial intermediation and markets at CentER - Tilburg University in the Netherlands and a CESIfo research fellow. He holds the TILEC-AFM Chair on Financial Market Regulation. His research interests include empirical and theoretical banking, market microstructure, and financial systems. Moshe Kim is professor of economics, University of Haifa, Israel and currently at Universitat Pompeu Fabra, Barcelona Spain. He is founder and co-director of the Barcelona Banking Summer School (BBSS) at the Barcelona Graduate School. His research interests include firm-bank relationships, imperfect banking competition, and financial systems. Steven Ongena is professor in empirical banking at CentER - Tilburg University in the Netherlands and a CEPR research fellow in financial economics. He is a member of TILEC, a NAKE and CFS fellow, a steering committee member of the ECB-CFS Research Network, and an associate editor of the Journal of Financial Services Research. His research interests include firm-bank relationships, bank mergers and acquisitions, and financial systems.