Journal ArticleDOI
Liquidity Risk, Regulation and Bank Performance: Evidence from European Banks
Kim Cuong Ly
- Vol. 8, Iss: 1, pp 11-33
TLDR
In this paper, the authors investigated the relationship between liquidity risk, regulation, supervision and bank performance by using a panel data of EU27 countries over 2001-2011, and found that liquidity risk is negatively associated with bank performance.Abstract:
Motivated by liquidity risk issues from the 2007 financial crisis, this paper investigates the relationships between liquidity risk, regulation, supervision and bank performance by using a panel data of EU27 countries over 2001-2011. This study finds that liquidity risk is negatively associated with bank performance. Capital regulation, official supervision, and restriction on bank activity policies are positively related to bank performance while deposit insurance, private monitoring practices have negative relationship with bank performance. Capturing capital requirement and increasing power to official supervisors are much preferred in the market-based than in the bank-based countries.read more
Citations
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Journal ArticleDOI
The Interactional Relationships Between Credit Risk, Liquidity Risk and Bank Profitability in MENA Region:
TL;DR: In this article, the authors investigate the relationship between credit risk, liquidity risks and bank profitability within the Middle East and North African (MENA) countries, and propose a model to evaluate the impact of these risks on bank profitability.
Journal ArticleDOI
Diversification, bank performance and risk: have Tunisian banks adopted the new business model?
TL;DR: In this article, the impact of non-interest income on banks' profitability measured by both return on assets (ROA) and return on equity (ROE) was investigated.
Journal ArticleDOI
Liquidity Risk and Bank Performance: An Empirical Test for Tunisian Banks
TL;DR: In this paper, the effect of liquidity risk on the Tunisian bank performance was investigated by applying panel data method, precisely random effect regression, results showed that liquidity risk decreases significantly Tunisian banks performance.
Journal ArticleDOI
Do firm-specific risks affect bank performance?
TL;DR: In this article, the impact of credit, liquidity and operational risks on the financial performance of commercial banks of South Asia was examined, where the generalized method of moments (GMM) was used to analyze the results.
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Diversification, bank performance and risk: have Tunisian banks adopted the new business model?
TL;DR: In this paper, the impact of non-interest income on banks' profitability measured by both return on assets (ROA) and return on equity (ROE) was investigated.
References
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Bank-Specific, Industry-Specific and Macroeconomic Determinants of Bank Profitability
TL;DR: In this article, the authors examined the effect of bank-specific, industry-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-Conduct-Performance (SCP) hypothesis.
Journal ArticleDOI
Bank Regulation and Supervision: What Works Best?
TL;DR: In this paper, the authors assess two broad and competing theories of government regulation: the helping hand approach, according to which governments regulate to correct market failures, and the grabbing-hand approach according to where government regulates to support political constituency.
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What is Financial Contagion
TL;DR: By invoking a metaphor of illness, financial contagion implies an economic disorder, dislocation, or disease that spreads from one infected host to others by some mechanism.
Journal ArticleDOI
Liberalization, Moral Hazard in Banking, and Prudential Regulation: Are Capital Requirements Enough?
TL;DR: In a dynamic model of moral hazard, competition can undermine prudent bank behavior as mentioned in this paper, thus encouraging gambling, which can be mitigated by adding deposit-rate controls as a regulatory instrument, since they facilitate prudent investment by increasing franchise values.
Journal ArticleDOI
Bank-specific, industry-specific and macroeconomic determinants of bank profitability
TL;DR: The authors examined the effect of bank-specific, industry-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional structureconduct-performance (SCP) hypothesis.