The impact of bank ownership concentration on impaired loans and capital adequacy

Shehzad, Choudhry Tanveer; Haan, Jakob de; Scholtens, Bert

doi:10.1016/j.jbankfin.2009.08.007

Cited by 253 publications

(224 citation statements)

References 29 publications

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“…The same result shows up when ownership concentration is defined using 50% ownership stake (OC3). This finding confirms the results of Shehzad et al (2010).…”

Section: Results For the Z-score Ratiosupporting

confidence: 92%

“…So ownership concentration matters less when the presence of regulatory control is stronger. This result is in line with the findings of Shehzad et al (2010) and the view of Demzets and Lehn (1985).…”

Section: Results For Assets Risk Ratio and Credit Risksupporting

confidence: 92%

“…Furthermore, approximately half (47%) of banks have one or more owners with more than 50% of share. We can conclude that in MENA countries, bank ownership structure is generally concentrated (Shehzad et al, 2010).…”

Section: Modelmentioning

confidence: 73%

“…This result was confirmed by Haw et al (2010) which provided that, in the Asian and European banks, the presence of the control block is associated with high levels of insolvency risk and volatility of profitability. Additionally, Shehzad et al (2010) analyze data around 500 banks from more than 50 countries averaged over 2005-2007 period. They affirmed that concentrated ownership significantly reduces a banks' non-performing loans ratio, conditional on supervisory control and shareholders protection rights.…”

Section: Ownership Concentrationmentioning

confidence: 99%

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Ownership Structure and Bank Risk-Taking: Empirical Evidence from the Middle East and North Africa

Hammami¹,

Boubaker²

2015

IBR

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This paper examines the impact of bank ownership structure on bank risk-taking. It used balance sheet information for around 72 commercial banks from 10 Middle East and North Africa (MENA) countries from 2000 to 2010. The main results emerged. After controlling for bank characteristics and country effects, we find that concentrated ownership structure is associated with an increase in bank risk-taking. Further, foreign-owned banks are more risked than Domestic-owned banks; however, Government-owned banks are more stable. For listed banks family ownership has positive impact on credit risk. So, family owners impose riskiest strategies when they hold higher stakes. For unlisted banks the effect of family and institutional ownership on risk is negative. Finally we conclude that the effect of owners identity on bank risk-taking depends on the fact that bank is listed or unlisted.

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“…The same result shows up when ownership concentration is defined using 50% ownership stake (OC3). This finding confirms the results of Shehzad et al (2010).…”

Section: Results For the Z-score Ratiosupporting

confidence: 92%

Section: Results For Assets Risk Ratio and Credit Risksupporting

confidence: 92%

Section: Modelmentioning

confidence: 73%

Section: Ownership Concentrationmentioning

confidence: 99%

See 2 more Smart Citations

Ownership Structure and Bank Risk-Taking: Empirical Evidence from the Middle East and North Africa

Hammami¹,

Boubaker²

2015

IBR

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“…Penilaian sistem CAMEL ini, mengukur apakah manajemen bank telah melaksanakan sistem perbankan dengan asas-asas yang sehat.Indikator yang dapat mempengaruhi Camel yaitu aspek permodalan (Capital).Penilaian pendekatan kuantitatif dan kualitatif faktor permodalan antara lain dilakukan melalui penilaian terhadap komponen-komponen: kecukupan pemenuhan Kewajiban Penyediaan Modal Minimum (KPMM) terhadap ketentuan yang berlaku, komposisi permodalan, trend ke depan/proyeksi KPMM, aktiva produktif yang diklasifikasikan dibandingkan dengan modal bank, kemampuan bank memelihara kebutuhan penambahan modal yang berasal dari keuntungan (laba ditahan), rencana permodalan bank untuk mendukung pertumbuhan usaha, akses kepada sumber permodalan, serta kinerja keuangan pemegang saham untuk meningkatkan permodalan bank ( Zhang, et al, 2008;Shehzad et al, 2010;Arnold et al, 2012;Shaw et al, 2013).…”

Section: Pendahuluanunclassified

Analisis Kinerja Dengan Menggunakan Pendekatan Rasio Camel

Murdiati

Purwanto

2015

Jurnal Ilmu Managemen dan Organisasi

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Bank green lending and credit risk: an empirical analysis of China's Green Credit Policy

et al. 2022

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This study empirically investigates the relationship between banks' green lending and their credit risk, and how Chinese green finance regulations contribute to the solvency of individual banks and the resilience of the financial system. Analysing a sample of 41 Chinese banks from 2007 to 2018, we find that the association between a bank's (relative) green lending as a proportion of its overall loan portfolio, and its credit risk, depends critically on the size and structure of state ownership. While the implementation of China's Green Credit Policy reduces credit risk for the major state‐controlled banks, it increases credit risk for the city and regional commercial banks. This performance difference appears largely due to information and expertise asymmetries, with the city and regional commercial banks having less access to information and expertise necessary to evaluate the credit risk of green lending. Understanding this phenomenon can help policymakers tailor green finance policies according to banks' characteristics. It also suggests that mechanisms and platforms for the city/regional commercial banks to learn from the major state‐controlled banks could be beneficial.

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The impact of bank ownership concentration on impaired loans and capital adequacy

Cited by 253 publications

References 29 publications

Ownership Structure and Bank Risk-Taking: Empirical Evidence from the Middle East and North Africa

Ownership Structure and Bank Risk-Taking: Empirical Evidence from the Middle East and North Africa

Analisis Kinerja Dengan Menggunakan Pendekatan Rasio Camel

Bank green lending and credit risk: an empirical analysis of China's Green Credit Policy

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