Bank competition, fire-sales and financial stability

Board busyness, performance and financial stability: does bank type matter?

“…Our findings contribute to the broad strands of literature that consider the relative impacts of distinct degrees of board busyness on performance and financial stability. This adds to the sizeable literature on bank financial stability (e.g., Chan and Milne 2014;Ashraf and Rizwan 2016;Rumler and Waschiczek 2016;Bitar et al 2017;Arnaboldi et al 2018). Moreover, by presenting evidence on the differential effects of board busyness across the two bank types, we extend the Islamic and conventional banking literature (e.g., Abedifar et al 2013;Beck et al 2013;Mollah and Zaman 2015;Mollah et al 2017).…”

New insights into bank asset securitization: The impact of religiosity

“…In addition, we follow Hilary and Hui's ( 2009) identification strategy for the valid instrument and employed a three-year lag of log of the population as our primary instrument. This instrument is valid only to the extent that any correlation between religiosity and potential omitted variables (e.g., competition, regulatory differences across time and time-varying bank growth opportunities) does not continue over time (Chan and Milne, 2014). Table 9, Test (1), reports the results for the instrumented religiosity from the second-stage estimation.…”

Does efficiency play a transmission role in the relationship between competition and stability in the banking industry? New evidence from South Asian economies

“…Also, efficiency influenced positively the liquidity risk proposing that a trade‐off exist between bank efficiency and liquidity risk in these four emerging economies. K. K. Chan and Milne (2014) examined the effect of risk on both bank profit and cost efficiencies. Tobit model was employed for the seven East Asian economies over the time period of 2001–2008.…”