scholarly journals Non-interest Income, Credit Risk and Bank Stability: Evidence from Vietnam

2020 ◽  
Vol 13 (1) ◽  
pp. 97-125
Author(s):  
Van Dan Dang ◽  
Van Cuong Dang
Keyword(s):  
Credit Risk ◽  
Bank Stability ◽  
Interest Income

Risk Behavior, Country Governance, and Bank Stability in Pakistan

2021 ◽  
pp. 185-203
Author(s):  
Hafiz Waqas Kamran ◽  
Abdelnaser Omran
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Risk Behavior ◽  
Commercial Banks ◽  
Financial Stability ◽  
Operational Risk ◽  
Bank Stability ◽  
Regression Methods ◽  
The Stability ◽  
Control Of Corruption

Keeping risk behavior and country governance in observation, this study has investigated the trends in financial stability for a sample of 22 commercial banks in Pakistan while controlling the effect of economic growth. Over the period of 2007 to 2016, the authors have applied OLS, FE, and RE regression methods to investigate which risk and governance factors are influencing the stability measures of the banks. It is found that financial stability in overall banks is affected by credit risk, operational risk, country risk, and financial crisis risk while control of corruption is also affecting ZROA in an adverse way.

scholarly journals THE EFFECTS OF MACROECONOMIC CONDITIONS ON LOAN PORTFOLIO CREDIT RISK AND BANKING SYSTEM INTEREST INCOME

Ekonomika ◽  
2012 ◽  
Vol 91 (3) ◽  
pp. 85-100 ◽  
Author(s):  
Ričardas Mileris
Keyword(s):  
Credit Risk ◽  
Banking System ◽  
Classification And Regression Tree ◽  
Economic Environment ◽  
Statistical Dependence ◽  
Tree Model ◽  
Loan Portfolio ◽  
Portfolio Credit Risk ◽  
Macroeconomic Conditions ◽  
Interest Income

This article presents on analysis of macroeconomic conditions in the EU countries in relation loan portfolio to credit risk and banking system interest income. The changing economic environment of banks influences their risks and activity results, so it is important to find the macroeconomic indicators that can determine the changes in debtors’ credit risk and banks’ financial condition. The banking system performs very important functions in a country’s financial system, so for its stability it is important to be able to predict the financial results of the banking system in relation to changes in the economic environment. The new Basel III Agreement seeks to improve the financial sector’s resistance to the possible negative scenarios in the economy and motivates to develop the credit risk assessment models considering their dependence on business cycles. For this reason, the statistical dependence between the set of macroeconomic factors and the loan portfolio credit risk together with interest income were estimated in this research. A statistical classification and regression tree model was developed, which allows to predict the possible changes in the interest income of a country’s banks with the 82.7% accuracy.

scholarly journals Determinants of Credit Risk: Evidence From Commercial Banks in Malaysia

2021 ◽  
Vol 16 (1) ◽  
pp. 134-143
Author(s):  
Noor Hafizha Muhamad Yusuf ◽  
Mohamad Shukery Mohamad Shamsudin ◽  
Wan Mohd Yaseer Mohd Abdoh ◽  
Noor Sharida Badri Shah ◽  
Rozihanim Shekh Zain
Keyword(s):  
Credit Risk ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Fe Model ◽  
Panel Regression ◽  
Return On Equity ◽  
Factors Affecting ◽  
Independent Variables ◽  
Interest Income ◽  
The Relationship

The purpose of this study is to determine the relationship between microeconomic factors with credit risk among selected commercial banks in Malaysia. For this purpose, a sample of seven out of 27 commercial banks in Malaysia was selected and the microeconomic factors affecting credit risk with six measurements of return on asset (ROA), bank size, leverage, the ratio of capital, interest income and return on equity (ROE) were examined by applying Panel Regression Fixed Effect (FE) Model for a period 20 years from 1998 to 2017. The scope of the study covers seven selected commercial banks in Malaysia namely: Affin Bank Berhad, Alliance Bank Malaysia Berhad, CIMB Bank Berhad, Hong Leong Bank Berhad, Malayan Banking Berhad, Public Bank Berhad and RHB Bank Berhad. This study is using credit risk proxy by non-performing loan for dependent variable while independent variables that have been selected were returned on asset (ROA), bank size, leverage, the ratio of capital, interest income and return on equity (ROE). The findings of the study managed to reject the null hypothesis for return on asset, bank size, leverage, interest income and return on equity which indicates the five microeconomic variables give a significant relationship with credit risk. There are positive relationships between leverage, interest income and return on equity with credit risk while return on asset, bank size and ratio of capital are negatively related to credit risk. However, the study fails to find any significant relationship between the ratio of capital and credit risk for commercial banks in Malaysia.

scholarly journals The effect of liquidity risk and credit risk on bank stability

2020 ◽  
Vol 8 (30) ◽  
pp. 7-26
Author(s):  
Nader Rezaei ◽  
Alireza Garabaghlu Shahabi ◽  
◽  
Keyword(s):  
Credit Risk ◽  
Liquidity Risk ◽  
Bank Stability

scholarly journals The effects of liquidity risk and credit risk on bank stability: Evidence from the MENA region

2017 ◽  
Vol 17 (4) ◽  
pp. 238-248 ◽  
Author(s):  
Ameni Ghenimi ◽  
Hasna Chaibi ◽  
Mohamed Ali Brahim Omri
Keyword(s):  
Credit Risk ◽  
Liquidity Risk ◽  
Mena Region ◽  
Bank Stability

scholarly journals The Bank Specific Determinants of Loan Growth and Stability: Evidence from Indonesia

2021 ◽  
Vol 36 (2) ◽  
pp. 93-123
Author(s):  
Pananda Pasaribu ◽  
Bonnie Mindosa
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Research Methods ◽  
Commercial Banks ◽  
Comprehensive Analysis ◽  
Bank Loans ◽  
Bank Stability ◽  
Small Banks ◽  
Loan Growth

Introduction/Main Objectives: This study aims to examine the specific determinants of loan growth and the consequences of excessive loan growth on bank stability. Background Problems: Bank loans play an important role in economic growth, but previous studies indicate that excessive loans lead to bank instability. Novelty: This study undertakes a comprehensive analysis, as it will discuss both the loan determinants and excessive loans simultaneously. Research Methods: This study covers more than 89% of the total loans of commercial banks (listed and non-listed banks) between 2002 and 2018 and it employs GMM in order to obtain robust estimations. Finding/Results: The growth of customers’ deposits and gross NPL are the most important factors in explaining loan growth in Indonesia. Banks with excessive loans tend to have high levels of credit risk. Conclusion: Banks’ liquidity and credit risk have important roles in explaining banks’ loans. However, excessive loans could lead to bank instability, particularly for small banks.

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