Impact of trade openness on bank risk-taking behavior: Evidence from a developing country

Artikel

This study investigates the impact of trade openness along with bank size, bank growth, liquidity, deposit insurance, industry centralization, and capital stringency on risk-taking behavior of commercial banks of Bangladesh. To examine the relationships, it considers 32 commercial banks over a period of 2000 to 2017. The main result of this study reveals that trade openness provides ample opportunities in lending activities of commercial banks and aids decreasing credit risk as well as overall bank risk. Hence, it has great implications for the policymakers to promote trade openness and make banks more competitive.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 8 ; Year: 2020 ; Issue: 1 ; Pages: 1-14

Classification and Topics

• Classification: Wirtschaft
• Subject: credit risk ; trade openness ; liquidity ; size ; capital stringency

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hossain, Sk Alamgir ; Moudud-Ul-Huq, Syed ; Binta Kader, Marufa
• Event: Veröffentlichung
• (who): Taylor & Francis
• (where): Abingdon
• (when): 2020

Further information

• DOI: doi:10.1080/23322039.2020.1765468
• Handle: http://hdl.handle.net/10419/269928