Diversification, Efficiency and Risk of Banks: Evidence From Emerging Economies

Ji (George) Wu, Limei Chen, Minghua Chen, B. Jeon
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引用次数: 23

Abstract

Abstract This paper examines the impact of business diversification of banks on their risk, with efficiency taken into consideration as a conduit. Using bank-level data from more than 1000 commercial banks in 39 emerging economies during the period of 2000–2016, we find that increased business diversification exerts two competing effects on bank risk. The direct effect of increased diversification bolsters the stability of banks, but it is offset by the indirect effect whereby lowered efficiency, which is resulted from higher diversification, increases the riskiness of banks. Thus, the overall benefits from bank business diversification on bank stability rely on the trade-off of the two competing forces.
银行多元化、效率与风险:来自新兴经济体的证据
摘要本文以效率为导向,考察银行业务多元化对其风险的影响。利用2000-2016年39个新兴经济体1000多家商业银行的银行层面数据,我们发现,业务多元化程度的提高对银行风险产生了两种竞争效应。增加多元化的直接效应增强了银行的稳定性,但它被间接效应所抵消,即更高的多元化导致的效率降低,增加了银行的风险。因此,银行业务多元化对银行稳定性的整体效益依赖于两种竞争力量的权衡。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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