Ownership, interest rates and bank risk-taking in Central and Eastern European countries

Drakos, Anastassios A.; Κουρέτας, Γεώργιος Π.; Tsoumas, Chris

doi:10.1016/j.irfa.2014.08.004

Cited by 54 publications

(47 citation statements)

References 22 publications

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“…Thirdly, by focusing on emerging and developing economies, we also add to the literature that examines the determinants of bank stability in these countries (e.g. Drakos et al, 2016). Emerging and developing economies are the drivers of global growth and their banking systems represent a growing part of the global banking sector.…”

Section: Introductionmentioning

confidence: 99%

Does institutional quality condition the effect of bank regulations and supervision on bank stability? Evidence from emerging and developing economies

Bermpei

Kalyvas

Nguyen

2018

International Review of Financial Analysis

134

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Does institutional quality enhance or weaken the effect of bank regulations and supervision on bank stability? We use a sample of around 1,050 commercial banks from 69 emerging and developing economies over the 2004-2013 period and show that the answer to this question depends on the type of institutional quality and on the type of bank regulation. Political stability strengthens the positive effect of capital regulation and activities restrictions on bank stability as measured by the z-score. Control of corruption also enhances the positive effect of activities restrictions on stability. On the other hand, the positive effect of capital regulation and private monitoring on stability subdues when good quality institutions that induce loan repayment, such as strong creditor rights and the rule of law, are present. Finally, we do not find strong evidence that the negative effect of supervisory power on bank stability is conditioned by institutional quality. In further analysis, we disaggregate the z-score measure and find that institutional quality conditions the effect of bank regulations on stability more by affecting profit stability and profitability rather than by influencing capitalisation. These findings could be useful for bank regulators in emerging and developing economies in the light of the implementation of the Basel III accord.

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Section: Introductionmentioning

confidence: 99%

Does institutional quality condition the effect of bank regulations and supervision on bank stability? Evidence from emerging and developing economies

Bermpei

Kalyvas

Nguyen

2018

International Review of Financial Analysis

134

View full text Add to dashboard Cite

show abstract

“…Much research, apart from key macroeconomic indicators, includes bank specific characteristics and/or bank industry specifics as determinants of credit risk (Agoraki et al, 2011;Maechler et al, 2007;Klein, 2013;Drakos et al, 2016). From this research, it is evident that bank specifics as profitability, size and capital are important determinants of credit risk in CEE countries.…”

Section: Theoretical and Empirical Background On Profitability And Crmentioning

confidence: 98%

“…Considering this assumption, it is necessary to investigate the difference in the influence of more than one previous profitability rate on the recent ratio of NPLs between domestic and foreign banks. To our knowledge, only Drakos et al (2016) considered the difference in the relationship between bank profitability and risk taking with regard to ownership, but they used only one lag. Results varied when including different indicators of bank risk (riskweighted assets and z-score) by sign and significance.…”

Section: Theoretical and Empirical Background On Profitability And Crmentioning

confidence: 99%

Have More Profitable Banks a More or a Less Risky Lending Policy? Empirical Evidence from CEE Countries

Perić¹

2018

Prague Economic Papers

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This paper investigates the short and long-run relationship between credit risk and two bank profitability indicators ROA and ROE in Central and Eastern European countries during the period from 2000 to 2010. Results from previous research mostly confirm the negative relationship between profitability and credit risk by considering the current or one year lagged value of profitability. Certain crisis indicates that more profitable banks before the crisis became more risky during the time of crisis. These results motivate us to upgrade the model of credit risk by including earlier values of profitability. Results indicate that two or three years are necessary for growth of profitability to increase credit risk. However, the long-run relationship between foreign banks' profitability and credit risk is positive, for both indicators. For the domestic bank, the longrun effect of ROA on credit risk is positive, while for ROE this relationship is negative.

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“…Trong đó: RISK i,t : Rủi ro của ngân hàng i năm t, với chỉ số Zscore được sử dụng làm đại diện. Tuy nhiên, chỉ số Zscore thường bị lệch nên biến này sẽ được hiệu chỉnh bằng cách lấy logarit tự nhiên của Z-score 3,12,37 . CONC i,t : Sở hữu tập trung của ngân hàng i năm t. Sở hữu tập trung là khái niệm liên quan đến cổ phần của những cổ đông lớn nhất 39 .…”

Section: Tác độNg Của Việc Niêm Yết đếN Mối Quan Hệ Giữa Cấu Trúc Sở unclassified

Ownership structure and risk of commercial banks in Vietnam

Minh

Bich

2020

Sci. Tech. Dev. J. Econ. Law. Manag.

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Bản quyền© ĐHQG Tp.HCM. Đây là bài báo công bố mở được phát hành theo các điều khoản của the Creative Commons Attribution 4.0 International license.Use your smartphone to scan this QR code and download this article TÓM TẮTNghiên cứu xem xét tác động của cấu trúc sở hữu, gồm bốn loại sở hữu (sở hữu tập trung, sở hữu tổ chức, sở hữu nước ngoài, và sở hữu nhà nước), đến rủi ro của ngân hàng được đo bằng chỉ số Z-score (chỉ số rủi ro ngược). Khung nghiên cứu thực nghiệm dựa trên phương pháp ước lượng bình phương nhỏ nhất tổng quát (kiểm soát cho hiện tượng tự tương quan và phương sai sai số thay đổi), để phân tích tập dữ liệu bảng không cân bằng của 21 ngân hàng thương mại cổ phần tại Việt Nam từ 2010 đến 2018. Nghiên cứu sau đó tìm hiểu sâu hơn về vai trò điều tiết của nguyên tắc thị trường (đại diện bởi biến niêm yết) lên mối quan hệ giữa cấu trúc sở hữu và rủi ro ngân hàng. Kết quả cho thấy mối quan hệ nghịch giữa ba loại hình sở hữu (sở hữu tập trung, sở hữu tổ chức, và sở hữu nhà nước) với rủi ro ngân hàng, riêng sở hữu nước ngoài chưa cho thấy mối quan hệ có ý nghĩa thống kê trong mô hình tác động trực tiếp. Tuy nhiên, kết quả từ mô hình có biến tương tác lại cho thấy cổ đông nước ngoài giúp tăng tính ổn định và giảm rủi ro trong các ngân hàng niêm yết. Bên cạnh đó, mối quan hệ giữa sở hữu tổ chức và rủi ro được thúc đẩy mạnh hơn ở các ngân hàng niêm yết, trong khi mối quan hệ giữa hai loại hình sở hữu còn lại (sở hữu tập trung, sở hữu nhà nước) với rủi ro là không bị ảnh hưởng bởi việc niêm yết. Từ khoá: Cấu trúc sở hữu, Rủi ro ngân hàng, Ngân hàng thương mại, Z-score CƠ SỞ LÝ THUYẾT VÀ PHƯƠNG PHÁP NGHIÊN CỨU Trích dẫn bài báo này: Minh P T, Bích B H H. Cấu trúc sở hữu và rủi ro của các ngân hàng thương mại Việt Nam. Sci. Tech. Dev. J. -Eco. Law Manag.; 3(SI):SI1-SI13. ABSTRACTThis study examines the impact of ownership structure on bank risk. The former is classified into four types, including concentrated, institutional, foreign, and government, while the latter is proxied by the Z-score (an inverse measure of risk). The Generalized Least Squares (GLS), which controls for heteroskedasticity and autocorrelation problems, is employed to analyze an unbalanced panel data set including 21 joint-stock commercial banks in Vietnam from 2010 to 2018. We further investigate the moderating effects of market discipline (proxied by variable listed) on the relationship between ownership structure and bank risk. The results suggest that there is a negative association between three proxies of ownership structure (ownership concentration, institutional ownership, and government ownership) and bank risk and that foreign ownership does not have any significant relationship on the risk of the bank in the direct relationship models. However, the results for the models where interaction variables are included show that foreign shareholders help improve bank stability and reduce risk in listed banks. In addition, the relationship between institutional ownership and bank risk is reinforced for listed banks, while the relationships...

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Ownership, interest rates and bank risk-taking in Central and Eastern European countries

Cited by 54 publications

References 22 publications

Does institutional quality condition the effect of bank regulations and supervision on bank stability? Evidence from emerging and developing economies

Does institutional quality condition the effect of bank regulations and supervision on bank stability? Evidence from emerging and developing economies

Have More Profitable Banks a More or a Less Risky Lending Policy? Empirical Evidence from CEE Countries

Ownership structure and risk of commercial banks in Vietnam

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