Artikel

Geographic loan diversification and bank risk: A cross-country analysis

This study investigates the geographic loan expansion on bank risk using the aggregate data of 53 countries from 2005 to 2016 using the system generalized method of moments. Our findings show that global expansion tends to increase bank insolvency and reduce bank adjusted-risk-performance. Our findings further indicate loans distributed to advanced markets tend to reduce bank stability while the proportion of loans to other emerging markets and developing countries may have the potential to improve bank solvency and risk-adjusted-performance. As diversification is seen as a necessary strategy to diversify bank risks, bank managers should put more attention to emerging markets.

Language
Englisch

Bibliographic citation
Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 8 ; Year: 2020 ; Issue: 1 ; Pages: 1-19

Classification
Wirtschaft
International Finance: General
Financial Institutions and Services: General
Subject
adjusted-risk-performance
bank stability
geographic loan diversification
global banking system

Event
Geistige Schöpfung
(who)
Tu Dq Le
Van TH Nguyen
Tran Hung Son
Event
Veröffentlichung
(who)
Taylor & Francis
(where)
Abingdon
(when)
2020

DOI
doi:10.1080/23322039.2020.1809120
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Tu Dq Le
  • Van TH Nguyen
  • Tran Hung Son
  • Taylor & Francis

Time of origin

  • 2020

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