Competition and risk in South East Asian commercial banking

Hong Liu; Philip Molyneux; Linh Nguyen

doi:10.1080/00036846.2011.579066

Competition and risk in South East Asian commercial banking

Hong Liu, Philip Molyneux, Linh Nguyen

Northumbria University

Research output: Contribution to journal › Article › peer-review

94 Citations (Scopus)

Abstract

This paper investigates the effects of competition on bank risk-taking behaviour in four South East Asian countries (Indonesia, Malaysia, Philippines and Vietnam). Our main finding is that competition does not increase bank risk taking behaviour and the results appear robust to different model specifications, estimation approaches and variable construction. We also find that concentration is inversely related to bank risk whereas regulatory restrictions positively influence bank risk-taking.

Original language	English
Pages (from-to)	3627-3644
Journal	Applied Economics
Volume	44
Issue number	28
DOIs	https://doi.org/10.1080/00036846.2011.579066
Publication status	Published - 2012

Keywords

bank competition
banking system fragility
financial stability
regulation

Access to Document

10.1080/00036846.2011.579066

Cite this

@article{4c2a745571e34026974bc7020c3bc11b,

title = "Competition and risk in South East Asian commercial banking",

abstract = "This paper investigates the effects of competition on bank risk-taking behaviour in four South East Asian countries (Indonesia, Malaysia, Philippines and Vietnam). Our main finding is that competition does not increase bank risk taking behaviour and the results appear robust to different model specifications, estimation approaches and variable construction. We also find that concentration is inversely related to bank risk whereas regulatory restrictions positively influence bank risk-taking.",

keywords = "bank competition, banking system fragility, financial stability, regulation",

author = "Hong Liu and Philip Molyneux and Linh Nguyen",

year = "2012",

doi = "10.1080/00036846.2011.579066",

language = "English",

volume = "44",

pages = "3627--3644",

journal = "Applied Economics",

issn = "0003-6846",

publisher = "Taylor & Francis",

number = "28",

}

TY - JOUR

T1 - Competition and risk in South East Asian commercial banking

AU - Liu, Hong

AU - Molyneux, Philip

AU - Nguyen, Linh

PY - 2012

Y1 - 2012

N2 - This paper investigates the effects of competition on bank risk-taking behaviour in four South East Asian countries (Indonesia, Malaysia, Philippines and Vietnam). Our main finding is that competition does not increase bank risk taking behaviour and the results appear robust to different model specifications, estimation approaches and variable construction. We also find that concentration is inversely related to bank risk whereas regulatory restrictions positively influence bank risk-taking.

AB - This paper investigates the effects of competition on bank risk-taking behaviour in four South East Asian countries (Indonesia, Malaysia, Philippines and Vietnam). Our main finding is that competition does not increase bank risk taking behaviour and the results appear robust to different model specifications, estimation approaches and variable construction. We also find that concentration is inversely related to bank risk whereas regulatory restrictions positively influence bank risk-taking.

KW - bank competition

KW - banking system fragility

KW - financial stability

KW - regulation

U2 - 10.1080/00036846.2011.579066

DO - 10.1080/00036846.2011.579066

M3 - Article

SN - 0003-6846

VL - 44

SP - 3627

EP - 3644

JO - Applied Economics

JF - Applied Economics

IS - 28

ER -

Competition and risk in South East Asian commercial banking

Abstract

Keywords

Access to Document

Fingerprint

Cite this