Showing 1 - 10 of 8,097
buffers on the profitability and risk behavior of Indonesian commercial banks from 2010 to 2020. The findings reveal that …-taking and prudent risk management to achieve optimal profitability. It underscores the need for banks to prioritize robust risk … on equity. The study emphasizes the importance of managing risk effectively, striking a delicate balance between risk …
Persistent link: https://www.econbiz.de/10014503054
geographic complexity can engender explicit trade-offs between the agency problems that increase risk and the diversification … organizations fail, the effect of complexity on BHCs' broader risk profiles is less well understood. Business, organizational, and …, liquidity management, and synergy improvements that reduce risk. The outcomes of such trade-offs may depend on bank governance …
Persistent link: https://www.econbiz.de/10012234342
. This paper investigates whether diversification influences banks' investment (credit) policy and profitability. Diversified …U.S. banks have increasingly diversified into activities traditionally considered as non-core for the banking sector … banks appear to benefit from “coinsurance,” supply more credit, and seem more profitable. However, diversification does not …
Persistent link: https://www.econbiz.de/10011518813
Interstate diversification of American banks was initially constrained by severe regulation. However over the years … decade we have witnessed an increasing trend in geographic diversification of American banks. In relation to this fact, the … question of whether interstate geographic diversification has a statistically significant effect on banks' cost of equity …
Persistent link: https://www.econbiz.de/10013130047
aims to analyze the effect of diversification on Indonesian banking efficiency as one of the emerging markets. We used …. Several previous studies of developed markets suggest that diversification has a positive effect on efficiency. This study … relatively low efficiency. Using the panel data, this study found the same result; diversification can improve Indonesian bank …
Persistent link: https://www.econbiz.de/10012863444
How do changes in banking regulation affect the syndicated loan market? Because branch networks and loan syndication … both facilitate banks' ability to diversify geographical credit risk, we focus on the Riegle-Neal Interstate Branching and … Banking Efficiency Act of 1994. We investigate its staggered state-wise implementation in a triple-difference identification …
Persistent link: https://www.econbiz.de/10012934141
’s asset. Diversification and leverage in turn determine both idiosyncratic and systemic insolvency risk. We first characterize …This paper analyzes the effects of bank manager’s incentive pay on financial stability. Two banks are owned by risk …-neutral principals and run by risk-averse managers that determine the level of leverage and how much to diversify into the other bank …
Persistent link: https://www.econbiz.de/10013295424
We check if the level of capital buffers influences the quality of bank diversification strategies. We use consolidated … diversification exerted non-monotonic impacts on bank robustness during and after the GFC. Capital buffers preserved the robustness of … less diversified BHCs in times of crisis. Well-capitalized BHCs adopted less prudent diversification strategies amid the …
Persistent link: https://www.econbiz.de/10013403203
This study examines the impact of geographic income diversification of large European banks on performance by using … unique hand-collected European banking data. By dividing the total operating income into three regions as home country, the … rest of Europe and the rest of the world, we find evidence that geographic income diversification reduces bank performance …
Persistent link: https://www.econbiz.de/10013403233
income diversification and market concentration are related to bank stability. Firstly, we document that bank stability is … positively related to revenue diversification, suggesting that banks are more stable when they are more engaged in non …-stability hypothesis that banks in a highly concentrated banking system are more likely to be more stable. Thirdly, we show that market …
Persistent link: https://www.econbiz.de/10014516258