Product diversification and bank risk: evidence from South Asian banking institutions

被引:16
作者
Edirisuriya, Piyadasa [1 ]
Gunasekarage, Abeyratna [1 ]
Perera, Shrimal [1 ]
机构
[1] Monash Univ, Monash Business Sch, Dept Banking & Finance, Melbourne, Vic, Australia
关键词
Diversification; South Asia; income; assets; banking institutions; NONINTEREST INCOME; GEOGRAPHIC DIVERSIFICATION; CORPORATE DIVERSIFICATION; MARKET VALUE; IMPACT; REGULATIONS; PERFORMANCE; COMPETITION; OWNERSHIP; STABILITY;
D O I
10.1080/00036846.2018.1489516
中图分类号
F [经济];
学科分类号
02 ;
摘要
We investigate whether the product diversification activities of South Asian banking institutions have led to an increase or decrease in their solvency and profit risks. Using the data of five countries - India, Bangladesh, Nepal, Pakistan and Sri Lanka - for the period 2000-2016, we analyse the effect of both income and assets diversification activities on the Z-score and SDs of ROA (Return on Assets) and ROE Return on Equity). Among income diversification activities, securities trading income has a significant positive influence on bank risk while other categories have no influence. With respect to assets diversification, non-interest-bearing assets and loans given to government were found to have a significant positive influence on bank risk, while mortgage loans and non-classified loans have opposite influences. However, the impacts of securities trading income and loans given to the government are mainly confined to private sector banks and state-owned banks, respectively. We also uncover some country-specific diversification influences on the above relationships.
引用
收藏
页码:444 / 464
页数:21
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