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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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The risk of financial intermediaries, Journal of Banking and Finance July (2014). Hasan, Iftekhar; Delis, Manthos D.; Tsionas, Efthymios G.


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Hasan, Iftekhar; Delis, Manthos D.; Tsionas, Efthymios G. 
Number of authors
Status Published
Year of publication 2014 
Date 15.07.2014 
Name of article The risk of financial intermediaries 
Name of journal Journal of Banking and Finance
Volume of issue 44 
Number of issue July 
Pages 1–12 
Abstract This paper reconsiders the formal estimation of bank risk using the variability of the profit function. In our model, point estimates of the variability of profits are derived from a model where this variability is endogenous to other bank characteristics, such as capital and liquidity. We estimate the new model on the entire panel of US banks, spanning the period 1985q1–2012q4. The findings show that bank risk was fairly stable up to 2001 and accelerated quickly thereafter up to 2007. We also establish that the risk of the relatively large banks and banks that failed in the subprime crisis is higher than the industry’s average. Thus, we provide a new leading indicator, which is able to forecast future solvency problems of banks.
Free text descriptor in English Estimation of risk, Profit function, Financial institutions, Banks, Endogenous risk, US banking sector 
JEL-codes C13; C33; E47; G21; G32 
ISSN / e-ISSN 0378-4266 
auki Internet addresses
Additional information Available online 8 April 2014.
Notes BoF DP 18/2014 


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