The threshold effects of income diversification on bank stability: an efficiency perspective based on a dynamic network slacks-based measure model

2022 ◽  
Author(s):  
Béchir Ben Lahouel ◽  
Lotfi Taleb ◽  
Kristína Kočišová ◽  
Younes Ben Zaied
Keyword(s):  
Dynamic Network ◽  
Threshold Effects ◽  
Bank Stability ◽  
Income Diversification ◽  
Measure Model

scholarly journals The Effects of Nonperforming Loans on Dynamic Network Bank Performance

2017 ◽  
Vol 2017 ◽  
pp. 1-11
Author(s):  
Day-Yang Liu ◽  
Ya-Chiang Wu ◽  
Cheng-Hsien Lin ◽  
Wen-Min Lu
Keyword(s):  
Risk Management ◽  
Production Process ◽  
Banking Sector ◽  
Influencing Factor ◽  
Dynamic Network ◽  
Holding Companies ◽  
Nonperforming Loans ◽  
Measure Model ◽  
Financial Holding ◽  
Financial Holding Companies

This paper is to explore the relationship between banks’ performance and their nonperforming loans (NPLs). The banks’ performance through a network production process structure with NPLs is developed. With increasing NPLs in recent years, the quality of lending assets is a key significant and influencing factor for banks’ operational risk. The research methodology is to integrate the radial and nonradial measures of efficiency into the network production process framework with NPLs; this study utilizes network epsilon-based measure model to evaluate the banking industry performance. In addition, the key characteristics of the bank industry including those of financial holding companies and privatized government banks are needed to be figured out and to provide insight into what causes imperfectly competitive conditions for some banks. The results demonstrate that the banking sector grew consistently in three aspects of operation: operating performance, profitability performance, and risk management in the last five years of the subject period. These results showed that the overall banking sector was capable of pursuing growth in both operations and profits while accounting for risk management. The potential applications and strengths of network data envelopment analysis in assessing financial organizations are also highlighted.

scholarly journals The effect of Lerner Index and income diversification on the general bank stability in Indonesia

2017 ◽  
Vol 12 (4) ◽  
pp. 56-64 ◽  
Author(s):  
Syahyunan ◽  
Iskandar Muda ◽  
Hasan Sakti Siregar ◽  
Isfenti Sadalia ◽  
Gerry Chandra
Keyword(s):  
Data Analysis ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Market Power ◽  
Stock Exchange ◽  
Bank Stability ◽  
Income Diversification ◽  
Data Analysis Technique ◽  
Lerner Index ◽  
Analysis Technique

The purpose of this study is to examine the effect of market power and income diversification on the General Bank stability in Indonesia. This research uses a data sample of 20 general banks listed on the Indonesia Stock Exchange for the period of 2011–2014. Data analysis technique used is Multiple Linear Regression. It can be concluded simultaneously that market power and revenue diversification have significant effect on bank stability and, partially, market power has a positive and significant effect on a bank stability. Income diversification has a positive non-significant effect on bank stability.

scholarly journals Bank maturity, income diversification, and bank stability

2021 ◽  
Vol 22 (6) ◽  
pp. 1492-1511
Author(s):  
Waqas Tariq ◽  
Muhammad Usman ◽  
Adeel Tariq ◽  
Robina Rashid ◽  
Junming Yin ◽  
...  
Keyword(s):  
Life Cycle ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Financial Statements ◽  
Internal Factor ◽  
Bank Stability ◽  
Income Diversification ◽  
Resource Based View ◽  
Research Findings ◽  
Dynamic Resource

The purpose of this research is to examine the influence of bank life cycle or bank maturity on income diversification (ID) and stability. In addition, this research investigates the ID relationship with bank stability. Drawing on the dynamic resource-based view and modern portfolio theory, this research examines the influence of a paramount internal factor i.e. bank life cycle or bank maturity on income diversification (ID) and stability consequence. Data were collected from the Pakistani’s commercial banks’ financial statements over the period 2005 to 2019. This research relied on the fixed effect and generalized method of moments (GMM) model to empirically test the proposed relationships. Core findings of the research reveal that bank maturity leads to enhanced ID and ID strongly influences the bank stability consequence, moreover, research findings are robust to use different measures of bank stability and GMM estimation techniques. To the authors’ best knowledge, this research is the first to report specific evidence about bank maturity as an internal driver of income diversification and stability and advances the literature seeking to understand the determinants of ID. This research also shows managers to recognize the importance of internal drivers to diversify effectively into non-interest income, and how such an effective ID translates into stability consequence.

Income Diversification and Bank Stability: Evidence from India

2018 ◽  
Author(s):  
Navneet Kaur ◽  
Santosh Srivatsav ◽  
Nemiraja Jadiyappa ◽  
Parneet Kaur
Keyword(s):  
Bank Stability ◽  
Income Diversification
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