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US bank holding companies: Structure of activities and performance through the cycles

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  • Albert, Stéphane

Abstract

The development of market-based finance has supported a larger involvement of banks in non-banking activities over the last decades. Does diversification beyond “traditional” banking result in actual diversification of earning risks and superior risk-return profile? Existing studies on bank performance address the effect of earnings based on accounting types and for specific time periods. With the exception of proprietary investments and financial leverage, knowledge with regard to underlying activities is scarce and little conclusive to date. Other studies, mainly stemming from central banks, do not focus on activity types or risk-return but evidence a marked influence of economic conditions and financial markets on banks' income.

Suggested Citation

  • Albert, Stéphane, 2015. "US bank holding companies: Structure of activities and performance through the cycles," International Review of Financial Analysis, Elsevier, vol. 42(C), pages 253-269.
    • Handle: RePEc:eee:finana:v:42:y:2015:i:c:p:253-269
    DOI: 10.1016/j.irfa.2015.08.002
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    2. Maria Carmen HUIAN & Marilena MIRONIUC & Oana Iuliana MIHAI, 2018. "Studying banking performance from an accounting perspective: Evidence from Europe," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(615), S), pages 5-26, Summer.

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    More about this item

    Keywords

    Bank performance; Earnings volatility; Diversification; Investment services; Interest rate risk;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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