The aim of this book is to bring academic work on contemporary issues in financial institutions and markets. The general theme is designed to allow for a wide range of topics covering the diverse nature of academic research in banking and finance. As a consequence the contributions cover a wide range of issues across a broad spectrum, including: bank business models, bank competition and stability, credit card pricing and risk; bank supervision; and international investments. This book was originally published as a special issue of The European Journal of Finance.
Introduction 1. How bank business models drive interest margins: evidence from US bank-level data 2. Bank competition, fire-sales and financial stability 3. Credit card interest rates and risk: new evidence from US survey data 4. The optimal size of the European Stability Mechanism: a cost–benefit analysis 5. Cross-country differences in personality and the foreign bias in international equity portfolios