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Do banks with more able managers get better funding costs?

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  • Nguyen, Minh Nhat
  • Tran, Dung Viet
  • Nguyen, Van

Abstract

This study examines the influence of managerial ability on the funding costs of U.S. banks from 2001:Q1 to 2021:Q2. Our analysis indicates that banks with strong managerial ability can secure funds at reduced costs, as measured by the interest paid on deposits. This effect is particularly prominent among larger banks. Our findings are robust across various model specifications and tests. Our study is of interest to regulators and other stakeholders.

Suggested Citation

  • Nguyen, Minh Nhat & Tran, Dung Viet & Nguyen, Van, 2024. "Do banks with more able managers get better funding costs?," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000126
    DOI: 10.1016/j.frl.2024.104982
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