Service Output of Bank Holding Companies in the 1990s and the Role of Risk

This paper constructs a new measure of output for Bank Holding Companies (BHCs) over the period 1986 to 1999. This flow measure of bank value added follows from a unified model of bank operation that integrates theories of production, financial intermediation, and asset pricing. The primary contribution of the model is to demonstrate how one should account for risk when measuring the value added of bank services.

Provided by: Federal Reserve Bank of Boston Topic: Software Date Added: Sep 2003 Format: PDF

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