The Cross-Section of Bank Value

• 成果类型: Article
• 署名作者: Egan, Mark; Lewellen, Stefan; Sunderam, Adi
• 署名单位: Harvard University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhab089
• 发表日期: 2022
• 页码: 2101
• 关键词: financial fragility; Deposit insurance; market-structure; liquidity risk; COMPETITION; PRODUCTIVITY; demand; CHOICE; cost; diversification

摘要

We study the determinants of value creation in U.S. commercial banks. We develop novel measures of individual banks' productivities at collecting deposits and making loans that we relate to bank market values. We find that deposit productivity is responsible for two-thirds of the value of the median bank and most variation in value across banks. Variation in productivity is driven by differences across banks in technology, customer demographics, and market power. We also find evidence of synergies between deposit-taking and lending. Our findings suggest that there is significant heterogeneity in banks' ability to capture value by manufacturing safe assets.