Which banks’ business operations are more risky? The impact of leverage on Brazilian financial institutions

IF 1.7 Q3 MANAGEMENT

IIMB Management Review Pub Date : 2024-06-01 DOI:10.1016/j.iimb.2024.03.005

Douglas da Rosa München , Herbert Kimura , Eduardo Kazuo Kayo

引用次数: 0

Abstract

We analyse the effect of leverage components and banks’ ‘business model channels’ on risk-taking for Brazilian banks. Using a detailed dataset from the Brazilian financial system, the results show that the measurement of leverage components is relevant for determining banks’ risk. We highlight two important findings. First, we provide novel insights for the design of a generalised method of moments (GMM) estimation using external instruments. Second, the derivative and on-balance-sheet operations are risky for investment and foreign banks. These results provide important information for banking supervision and regulation and bring new insights regarding banks’ leverage behaviour.

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哪些银行的业务经营风险更高？杠杆对巴西金融机构的影响

我们分析了杠杆成分和银行 "业务模式渠道 "对巴西银行承担风险的影响。通过使用巴西金融体系的详细数据集，结果表明杠杆成分的衡量与银行风险的确定息息相关。我们强调了两个重要发现。首先，我们为设计使用外部工具的广义矩方法（GMM）估计提供了新的见解。其次，对于投资银行和外资银行来说，衍生品业务和资产负债表内业务风险较大。这些结果为银行监管提供了重要信息，并为银行的杠杆行为带来了新的启示。

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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来源期刊

IIMB Management Review MANAGEMENT-

CiteScore

3.20

自引率

5.90%

发文量

审稿时长

68 days

期刊介绍： IIMB Management Review (IMR) is a quarterly journal brought out by the Indian Institute of Management Bangalore. Addressed to management practitioners, researchers and academics, IMR aims to engage rigorously with practices, concepts and ideas in the field of management, with an emphasis on providing managerial insights, in a reader friendly format. To this end IMR invites manuscripts that provide novel managerial insights in any of the core business functions. The manuscript should be rigorous, that is, the findings should be supported by either empirical data or a well-justified theoretical model, and well written. While these two requirements are necessary for acceptance, they do not guarantee acceptance. The sole criterion for publication is contribution to the extant management literature.Although all manuscripts are welcome, our special emphasis is on papers that focus on emerging economies throughout the world. Such papers may either improve our understanding of markets in such economies through novel analyses or build models by taking into account the special characteristics of such economies to provide guidance to managers.