The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.
Why are bank profits so persistent? The roles of product market competition, informational opacity, and regional/macroeconomic shocks
Abstract
We investigate how banking market competition, informational opacity, and sensitivity to shocks have changed over the last three decades by examining the persistence of firm-level rents. We develop propagation mechanisms with testable implications to isolate the sources of persistence. Our analysis suggests that different processes underlie persistent performance at the high and low ends of the distribution. Our tests suggest that impediments to competition and informational opacity continue to be strong determinants of performance; that the reduction in geographic regulatory restrictions had little effect on competitiveness; and that performance remains sensitive to regional/macroeconomic shocks. The findings also suggest reasons for the recent record profitability of the industry.
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Citations
Cites
On Persistence in Mutual Fund Performance
Carhart, M. M. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb03808.x · Cited by 17,283
Survivorship Bias in Performance Studies
Brown, S. J., Goetzmann, W., Ibbotson, R. G., & Ross, S. A. (1992) · Review of Financial Studies · doi:10.1093/rfs/5.4.553 · Cited by 1,121
Cited by
Banking Market Structure, Financial Dependence and Growth: International Evidence from Industry Data
Cetorelli, N., & Gambera, M. (2001) · The Journal of Finance · doi:10.1111/0022-1082.00339 · Cited by 788
Metadata
- Authors
- Berger, A. N., Bonime, S. D., Covitz, D. M., & Hancock, D.
- Venue
- Journal of Banking & Finance
- Publisher
- Elsevier BV
- Published
- 2000-07
- Volume
- 24
- Issue
- 7
- Pages
- 1203-1235
- ISSN
- 0378-4266 (ISSN-L)
- OpenAlex
- W2165511241
- Cited by
- 290
- References
- 2
- FWCI
- 12.70
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: Why are bank profits so persistent? The roles of product market competition, informational opacity, and regional/macroeconomic shocks. https://app.cochat.ai/papers/10.1016/s0378-4266(99)00124-7
- The paper
- Berger, A. N., Bonime, S. D., Covitz, D. M., & Hancock, D. (2000). Why are bank profits so persistent? The roles of product market competition, informational opacity, and regional/macroeconomic shocks. Journal of Banking & Finance. https://doi.org/10.1016/s0378-4266(99)00124-7
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
