Competition and risk in South East Asian commercial banking

Deregulation, financial crisis, and bank efficiency in Taiwan: an estimation of undesirable outputs

“…Following other studies, this study attempts to establish an empirical regression equation. Following Liu et al (2012) and Liao (2013), risk was measured by ROA volatility. This rate is an accounting-based volatility indicator measured by standard deviation of each bank's yearly ROA.…”

Does competition only impact on insolvency risk? New evidence from the Chinese banking industry

“…Our study contributes to the empirical literature on Chinese banking competition by testing the impact of competition on the risk-taking behaviour of Chinese banks. Furthermore, we fill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 t e r n a t i o n a l J o u r n a l o f M a n a g e r i a l F i n a n c e 3 gaps in the banking literature by examining the effect of competition on bank stability in the following two ways: 1) rather than focusing only on insolvency risk (Liu et al, 2013;Liu and Wilson;2013), our study investigates credit risk, liquidity risk, and capital risk; 2) we use an efficiencyadjusted Lerner index because it provides more robust results (Tabak et al, 2012) compared to the Lerner index used by most of the empirical studies; 3) rather than using Z-score as the indicator of insolvency risk (Liu et al, 2012, Liu et al, 2013Liu and Wilson, 2013), the current study uses stability inefficiency as the indicator which provides more robust results. The investigation of this topic is particularly important in the Chinese banking industry due to the fact that as a result of this analysis, the Chinese government and banking regulatory authority can make more comprehensive policies not only on the whole banking industry, but also more importantly, relevant policies can be made specifically on different ownership types of Chinese commercial banks.…”

Effect of Bank Competition on Financial Stability: Empirical Evidence from Nepal

“…There is a large empirical literature which aims to examine the impact of banking system structure on its stability and hence shed light on the conflicting theoretical predictions and policy debates on this issue. However, similar to the theoretical literature, empirical studies produce different findings and do not offer concrete single evidence on the validity of either the competitionstability or the competition-fragility views (Boyd et al, 2006;Schaeck & Cihak, 2008;Berger et al, 2009;Fungacova & Weill, 2009;Liu et al, 2012;Anginer et al, 2014).Overall, it appears that empirical studies for specific countries have not reached conclusiveevidence for either a stabilityenhancing or a stability-deteriorating view of competition. Beck et al (2006) argue that this relation is complex and has important interactions with macroeconomic, regulatory and institutional framework of countries and changes with different model specifications.…”