Bank Risk and the Declining Franchise Value of the Banking Systems in the United States and Japan

Preprint OPEN
Howard Lee; Liliana Rojas-Suárez; Steven Riess Weisbrod;
(1992)
  • Subject: Commercial banks;Banking systems;Bank reforms;Japan;United States;banking, bank risk, bankers, financial statements, bank liquidity

This paper associates both the increase in risk taken by wholesale banks in the United States and the decline in earnings at wholesale banks in Japan with a reduction in the franchise value of wholesale banking. In contrast with the conventional view that relates the fr... View more
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