The Affect of Financial System, the Cross-Country Heterogenity of Political Economy, Bank Diversification and Competition on Bank Stability
| Autor: | Ho,Yu-Jhen, 何羽真 |
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| Rok vydání: | 2016 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 104 With the increasing changes of financial environment，the competition of banking industry has become more intense result in bank manage has more challenge. According to past literatures, there were two hypotheses between competition and stability, “Competition-Fragility” and “Competition-Stability”. The bank in order to grow the profit, they turn to develop the non-traditional activities and the non-interest income increase year by year. According to Stiroh (2004) noted that the level of risk will not be reduced by increasing reliance on non-interest incomes. Based on the above reason, our study using a sample of 2665 banks around the world in 85 countries over nine year period 2006-2014 and use two-stage least square to explore the bank diversification and competition on stability. Our empirical results show that banking competition has a significant positive effect on stability implying that the Lerner index increase show the competition of banking industry has become more lower, therefore, the competition deficiency in marking environment then the bank charge high loan interest, high interest make the enterprise investment in high risk program and result in the bank non-performing loans will be higher, therefore, overall bank enhance risk level, our result support the view of “competition-stability”. The bank revenue diversification and non-interest income have a significant positive effect on stability implying that increase interest and non-interest diversification activities will be increase difference source of income, contribute to enhance risk adjusted return on capital and into financial market more widespread then decrease the risk of bank make increase stability. Our study also consider the situation of national political, economy development and herding effect, we find that the relationship between bank’s diversification and competition on stability will be strengthened in the countries with rule of law and corruption perceptions of index. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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