scholarly journals Bank Performance and Noninterest Income: Evidence from Countries in the Asian Region

2022 ◽  
Author(s):  
Sherika Antao ◽  
Ajit Karnik
Keyword(s):  
Economic Growth ◽  
Bank Risk ◽  
Bank Performance ◽  
Asian Countries ◽  
Proxy Measure ◽  
The Usa ◽  
European Banks ◽  
Time Periods ◽  
The Relationship ◽  
Interest Payments

AbstractNoninterest income (NII) is income generated by banks from sources other than interest payments. Studies conducted on the relationship between NII and bank risk for the USA and Europe have found that emphasis on income diversification lowers risk in European banks but exacerbates it in American banks. Current research on Asian banks has not led to a coherent view of the relationship between NII and bank risk. We employ data over 25 years for 24 Asian countries to examine this relationship. Using the GMM estimation approach we estimate equations for two time-periods, 1996–2007 and 2008–2018, to examine the NII-bank risk relationship in the presence of some controlling financial, macroeconomic and policy variables. Our results show that non-interest income worsens bank risk for all 24 countries as well as for sub-groups of countries. We also find that, by and large, economic growth improves bank risk while inflation above a threshold worsens it. Finally, our proxy measure for monetary policy improves bank risk though fiscal policy seems to have no effect.

scholarly journals Influence of Tourism on Economic Development in Asian Countries

2020 ◽  
Vol 5 (2) ◽  
pp. 207-216
Author(s):  
Wen-Chuan FU ◽  
◽  
Chia-Jui PENG ◽  
Tzu-Yi YANG ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Global Economy ◽  
Tourism Industry ◽  
Asian Countries ◽  
Cross Sectional ◽  
Rate Fluctuation ◽  
National Economic ◽  
International Entry ◽  
The Relationship

Although the tourism industry has recorded the lowest pollution, it significantly contributes to the global economy. Therefore, many countries have spent great efforts in promoting their tourism industry to support their entire economic development. This article considers factors related to the relationship between national economic growth and international entry tourism for 11 Asian countries to investigate the existence of the cross-sectional difference between these countries. Results show that exchange rate fluctuation is an alternative factor affecting economic growth risk, and common slope exists between countries. Moreover, international entry tourist headcount and income show differential slope in some countries, implying that these factors affect the economies of different Asian countries differently.

scholarly journals Export Earnings, Capital Instability and Economic Growth in South Asia

2003 ◽  
Vol 8 (1) ◽  
pp. 65-89
Author(s):  
Muhammad Aslam Chaudhary ◽  
Amjad Naveed
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Foreign Capital ◽  
Developed Countries ◽  
Export Diversification ◽  
Asian Countries ◽  
The Impact ◽  
The Relationship

During the last two decades the role of international trade and flow of foreign capital have received considerable attention in the literature. Various studies have examined the impact of export instability and capital instability on economic growth in less developed countries.1 Empirical evidence supports the hypothesis of a deleterious impact of export instability on economic growth. However, some studies also indicated that the relationship was unstable but positive with economic growth.2 Yet there are no systematic empirical investigations into the implied links between export diversification and long-term economic growth, particularly in the case of South Asian countries. The major concern regarding export instability is that it retards economic growth.

scholarly journals Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria?

2020 ◽  
pp. 14-33
Keyword(s):  
Economic Growth ◽  
Inflation Rate ◽  
Bank Performance ◽  
Fiscal Policies ◽  
Empirical Examination ◽  
Economic Growth Rate ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Short Run ◽  
The Relationship

This study investigated the relationship between macroeconomic variables and the performance of deposit money banks in Nigeria, analyzed with suitable finametric tools. The results of the empirical examination found that all the macroeconomic variables employed (economic growth rate, interest rate, inflation rate, money supply and exchange rate in this study have no significant relationship with bank performance. It was also observed that each and jointly, the macroeconomic variables do not cause bank performance both in the short run and long run. Again, that bank performance responds insignificantly to the shocks of all the macroeconomic variables. Consequently the researchers advocate that deposit money banks in Nigeria with inherent discretionary policy be proactive to the monetary and fiscal policies of regulatory authorities in order to enhance their performance.

scholarly journals Stakeholder Engagement: Some Empirical Evidence from a Sample of European Banks

2015 ◽  
Vol 2 (2) ◽  
pp. 11 ◽  
Author(s):  
Giuliana Birindelli ◽  
Mariantonietta Intonti ◽  
Massimo Bilancia ◽  
Maura La Torre ◽  
Martina Malorni
Keyword(s):  
Empirical Evidence ◽  
Stakeholder Engagement ◽  
Banking Sector ◽  
Bank Performance ◽  
Bank Profitability ◽  
Research Areas ◽  
Recent Approach ◽  
European Banks ◽  
The Relationship ◽  
Management Issues

<p>Our paper aims to analyse the practice of Stakeholder Engagement (SE) in the banking sector and to investigate if SE affects European bank profitability. To identify how banks engage stakeholders we developed a model for calculating an original "SE rating", that comes from four research areas: "Disclosure", "Stakeholders engaged", "Instruments of engagement", and "Management of the SE process". We then provided empirical evidence about the relationship between bank performance and SE rating through a panel analysis. Our evidence shows that commitment to SE should be increased significantly by focusing on organisation and management issues, and - to a lesser extent - on disclosure towards the market. Finally, our econometric study shows that relationship between SE rating and bank performance is not statistically significant, most likely due to the recent approach of banks to SE practice.</p>

Banking regulation and supervision: can it enhance stability in Europe?

2014 ◽  
Vol 6 (3) ◽  
pp. 244-269 ◽  
Author(s):  
Faten Ben Bouheni
Keyword(s):  
Risk Taking ◽  
Generalized Method Of Moments ◽  
Banking Regulation ◽  
European Countries ◽  
Bank Risk ◽  
Dynamic Panel ◽  
Content Type ◽  
Regulation And Supervision ◽  
European Banks ◽  
The Relationship

Purpose – This paper aims to find the effects of regulatory and supervisory policies on bank risk-taking. The same regulation and supervision have different effects on bank risk-taking depending on influence factors. These factors were considered and a sample of the largest European banks from France, Germany, UK, Italy, Spain and Greece was used over the period 2005-2011. Design/methodology/approach – In this paper, the author analyses the effects of regulation and supervision on risk-taking. The author uses a sample of the biggest banks from six European countries (France, UK, Germany, Italy, Spain and Greece) over the period 2005-2011. Because the applicable entry of IFRS was in 2005, thus data of European banks are not available before this date. For each country in the sample, the 10 largest banks (defined by total assets) that lend money to firms were identified. The author does not include central banks or postal banks, which generally do not lend money to firms and are described as non-banking institutions (La Porta et al., 2002). Findings – It was found that restrictions on bank activities, supervisors’ power and capital adequacy decrease risk-taking. Thus, regulation and supervision enhance bank’s stability. While, deposit insurance increases the risk due to its association to moral hazard. Finally, it was found that strengthening regulatory and supervisory framework raises the risk-taking and weakens the stability of European banks. Originality/value – The author contributes to existing empirical analyses in three ways. First, the existing literature has drawn a lot of attention on US banks. However, the purpose of this paper is to examine the biggest banks of three European leaders (France, Germany and UK) and three more European countries influenced by the recent crisis (Spain, Italy and Greece) over the period 2005-2011. Second, most studies focus mainly on the relationship between regulation and profitability, yet seldom on the relationship between regulation, supervision and risk-taking. The author focuses on this relationship. Third, this study applies the two-step dynamic panel data approach suggested by Blundell and Bond (1998) and also uses dynamic panel generalized method of moments (GMM) method to address potential problems. The two-step GMM estimator that the author uses is generally the most efficient.

Revisiting the energy consumption–economic growth causal relationships in tails

2018 ◽  
Vol 45 (5) ◽  
pp. 898-909 ◽  
Author(s):  
Panayiotis Tzeremes
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Total Consumption ◽  
Content Type ◽  
Country Level ◽  
Causality Tests ◽  
The Usa ◽  
High Level ◽  
Quantile Causality ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between the energy consumption and the economic growth in the USA and in a sectoral level by using monthly data from January 1991 to May 2016. Design/methodology/approach While assessing the relationship at a country level, the authors also examine five sectors by using quantile causality. Findings The findings indicate the existence of a causality at the sectoral level in tails. More specifically, industrial and electric sectors cause the growth at the lower and higher levels. Residential, commercial and transportation sectors do not cause the growth in all levels. Total consumption causes the growth in the middle and low levels but not in the high level. Finally, the empirical evidence signifies an asymmetric relationship between the covariates. Practical implications The results imply that when the consumption deals conditions with fluctuation, it is likely to be affected by growth. In such a case, energy policies gear toward reducing or increasing energy intensity, improving energy efficiency, encouraging the use of alternative sources and investing in the development of technology. Originality/value The authors use, for the first time, the quantile causality for the case of energy consumption and economic growth. The quantile test is useful for a thorough comprehension of the causal relationship for this area. Compared to the OLS, which is used for the majority of causality tests, the quantile investigates the causality at the sectoral level in the tails.

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