Toward a More Resilient Financial System: Should Banks Be Diversified?
| Autor: | Olga Del Orden-Olasagasti, Laura Baselga-Pascual, Antonio Trujillo-Ponce |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
diversification
media_common.quotation_subject Geography Planning and Development lcsh:TJ807-830 Diversification (finance) lcsh:Renewable energy sources Financial system Management Monitoring Policy and Law dynamic panel 0502 economics and business Economics Revenue lcsh:Environmental sciences Generalized method of moments media_common 040101 forestry lcsh:GE1-350 050208 finance Renewable Energy Sustainability and the Environment lcsh:Environmental effects of industries and plants 05 social sciences Estimator European banking system 04 agricultural and veterinary sciences sustainability of economic recovery lcsh:TD194-195 Sustainability Economic recovery 0401 agriculture forestry and fisheries bank profitability Profitability index Psychological resilience bank risk |
| Zdroj: | Sustainability, Vol 10, Iss 6, p 1903 (2018) Sustainability Volume 10 Issue 6 |
| ISSN: | 2071-1050 |
| Popis: | This article empirically analyzes the effects of revenue diversification on the profitability and risk of a large sample of Eurozone banks over the period from 2000 to 2012. We use the generalized method of moments (GMM) estimator, which is also referred to as the system-GMM estimator. We conclude that higher income diversification favors bank profitability. However, our study does not find a significant relationship between revenue diversification and bank risk, even when considering a crisis period. Our results suggest that establishing restrictions in the universal banking model could damage the resilience of the financial system, and thus affect the sustainability of the uneven economic recovery in Europe. |
| Databáze: | OpenAIRE |
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