Bank Risk and Bank Rents: The Franchise Value Hypothesis Reconsidered

2020 ◽  
Author(s):  
Gianni De Nicolo ◽  
Viktoriya Zotova
Keyword(s):  
Bank Risk ◽  
Franchise Value

Moral hazard and risk-taking incentives in Islamic banks, does franchise value matter!

2017 ◽  
Vol 10 (1) ◽  
pp. 42-59 ◽  
Author(s):  
Mehdi Mili ◽  
Sami Abid
Keyword(s):  
Moral Hazard ◽  
Risk Taking ◽  
Bank Risk ◽  
Islamic Banks ◽  
Total Risk ◽  
Empirical Examination ◽  
Content Type ◽  
Islamic Bank ◽  
Franchise Value ◽  
The Impact

Purpose This paper aims to examine risk-taking in Islamic banks by exploring moral hazard and owner/manager agency problems simultaneously. Design/methodology/approach The authors propose to estimate a model of bank risk-taking that includes both franchise value and ownership structure as explanatory factors of bank risk. Findings The results show that franchise value is an important determinant of Islamic bank risk-taking. Banks with high franchise values are less likely to take risks than banks with low franchise value. In contrast, outside block holders have, at best, limited influences on bank risk-taking. Originality/value This paper conducts the first empirical examination of the relationship between managerial risk preferences and Islamic banks ownership. The authors examine simultaneously the effect of franchise value and owner/manager problem on Islamic bank risk taking behavior. They consider separately the impact on total risk, systematic risk and bank specific risk.

Bank Risk and the Declining Franchise Value of the Banking Systems in the United States and Japan

1992 ◽  
Vol 88 (43) ◽  
pp. 1 ◽  
Author(s):  
Howard Lee ◽  
Liliana Rojas-Suárez ◽  
Steven Riess Weisbrod ◽  
◽  
◽  
...  
Keyword(s):  
United States ◽  
The United States ◽  
Bank Risk ◽  
Banking Systems ◽  
Franchise Value

scholarly journals The Determinants of Bank Risk Taking: Evidence From Jordan

2020 ◽  
Vol 11 (6) ◽  
pp. 100
Author(s):  
Ali Awartany ◽  
Khaled Alzubi
Keyword(s):  
Risk Taking ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Bank Risk ◽  
Capital Adequacy Ratio ◽  
Franchise Value ◽  
Negative Effect ◽  
The Relationship ◽  
Positive Effect

This study examines the determinants of bank risk taking for a sample of 15 Jordanian banks, according to Basel I and Basel II standards for capital regulation and by testing the relationship between bank risk taking and banks financial information using multiple linear regression analysis. The study found that most Jordanian banks committed to capital adequacy ratio regulations which decrease the bank risk taking, Bank Risk Taking (RSK) was found to be adversely affected by Capital Adequacy Ratio (CAR), The Franchise value (FRN) has a negative effect on bank risk taking (RSK), The Stable Shareholder (HLD) variable has a significant positive effect on Bank Risk Taking (RSK). The squared value of Stable Shareholders (HLD_SQR) has a significant negative effect on Bank Risk Taking (RSK).

Bank Risk Management and the Franchise Value

2004 ◽  
Author(s):  
Wolfgang Bauer ◽  
Marc Ryser
Keyword(s):  
Risk Management ◽  
Bank Risk ◽  
Franchise Value

Bank Risk and the Declining Franchise Value of the Banking Systems in the United States and Japan

1992 ◽  
Author(s):  
Steven R. Weisbrod ◽  
Howard Lee ◽  
Liliana Rojas-Suarez
Keyword(s):  
United States ◽  
The United States ◽  
Bank Risk ◽  
Banking Systems ◽  
Franchise Value

Factors driving risk in the US banking industry

2015 ◽  
Vol 11 (3) ◽  
pp. 388-410 ◽  
Author(s):  
Katina Gregory ◽  
Gerhard Hambusch
Keyword(s):  
Financial Crisis ◽  
Banking Industry ◽  
Negative Relationship ◽  
Bank Risk ◽  
Cross Sectional ◽  
Content Type ◽  
Holding Companies ◽  
Franchise Value ◽  
The Us ◽  
Driving Risk

Purpose – The purpose of this paper is to investigate how several key risk factors, including capital-to-asset ratio (CAR), franchise value and lobbying, affect various measures of risk in the US banking industry before, during and after the financial crisis. The empirical analysis covers the period 2004-2013. Design/methodology/approach – Using recent bank holding company data, this research explores several factors driving risk in the US banking industry. The authors follow recent regulatory models and use a cross-sectional approach that can be employed as a complement to established regulatory bank failure and early warning models to detect and prevent bank crisis and to guide policy intervention over time. Findings – The findings provide evidence that the CAR has a negative relationship with bank risk. The authors also show that banks’ franchise values exhibit a positive relationship with bank risk in non-crisis years and a negative relationship during the crisis. The authors further find evidence suggesting that lobbying decreases bank risk in non-crisis years and increases risk during the crisis. Originality/value – Previous studies have controversially discussed the effect of factors driving bank risk. The authors contribute to the discussion and provide the first empirical study to analyze the effects of lobbying activities by bank holding companies on bank risk before, during and after the financial crisis.

Factors Affecting Bank Risk-Taking: Evidence from Southeast Asian Countries

2016 ◽  
Vol 23 (2) ◽  
pp. 120-136
Author(s):  
NGUYEN THANH LIEM ◽  
TRAN HUNG SON ◽  
HOANG TRUNG NGHIA
Keyword(s):  
Risk Taking ◽  
Southeast Asian ◽  
Bank Risk ◽  
Asian Countries ◽  
Factors Affecting ◽  
Southeast Asian Countries

The Strategic Underreporting of Bank Risk

CFA Digest ◽  
2018 ◽  
Vol 48 (5) ◽  
Author(s):  
Servaas Houben
Keyword(s):  
Bank Risk

Supervisory bank risk early warning modeling: an examiner’s first line of defense

2020 ◽  
Vol 16 (3) ◽  
pp. 75-100
Author(s):  
Christopher Henderson ◽  
Shaohui Jia ◽  
Charles Mattioli
Keyword(s):  
Early Warning ◽  
Bank Risk ◽  
First Line
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