Powerful CEOs Boost Bank Profitability and Asset Quality During Crises.
The article explores how powerful CEOs in banks affect their performance during financial crises. The researchers looked at data from 378 large global banks and found that banks with strong CEOs tend to have higher profits and better asset quality, but also face higher insolvency risk during the sovereign debt crisis. This suggests that having a powerful CEO does not necessarily harm a bank's performance. Additionally, the study suggests that deposit insurance may have played a role in the credit crisis.