scholarly journals Does Bank Competition Enhance or Hinder Financial Stability? Evidence from Indian Banking

2020 ◽  
Vol 9 (s1) ◽  
pp. 75-102
Author(s):  
Bijoy Rakshit ◽  
Samaresh Bardhan
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Positive Impact ◽  
Banking System ◽  
Bank Competition ◽  
Z Score ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
The Impact

AbstractThe primary purpose of this paper is to empirically investigate the impact of bank competition on financial stability in India. We use a dynamic panel model to examine whether an increase in bank competition hindrances financial stability of commercial banks in India over the period 1996 to 2016. Findings reveal that in India, a higher degree of bank competition is positively associated with the prevalence of non-performing loans. Additionally, the positive impact of the Lerner index on Z-score lends support to competition-fragility hypothesis. However, we argue that both the views of competition-stability and competition-fragility can coexist in a single banking system like India.

scholarly journals The Impact of Macroprudential Policies on the Vulnerability of the Banking System: Dynamic Panel Model

2020 ◽  
Vol 15 (4) ◽  
pp. 357-379
Author(s):  
Nafiseh Keshtgar ◽  
◽  
Mosayeb Pahlavani ◽  
Seyed Hossein Mirjalili ◽  
◽  
...  
Keyword(s):  
Banking System ◽  
System Dynamic ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Macroprudential Policies ◽  
Panel Model ◽  
The Impact

The impact of credit risk on the financial stability of commercial banks in Vietnam

2021 ◽  
Vol 11 (2) ◽  
pp. 67-80
Author(s):  
Nguyen Quoc Anh ◽  
Duong Nguyen Thanh Phuong
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Financial Stability ◽  
Dynamic Panel Data ◽  
Z Score ◽  
Return On Equity ◽  
Score Analysis ◽  
Negative Effect ◽  
The Difference ◽  
The Impact

This study investigates the impact of credit risk on the financial stability of Vietnamese commercial banks. The paper uses the Z-score to proxy the financial stability of banks. We use the data of 27 Vietnamese commercial banks on BankScope, during 2010 - 2019. The paper applied a dynamic panel data approach; the selected method is the difference GMM (DGMM). The key question discussed is which factor impacts on Z-score. Analysis results show the negative effect of non-performing loans on the financial stability of banks. When commercial banks have higher non-performing loans, the lower the financial stability is. Additionally, bank-specific variables such as equity on asset ratio, the return on equity, the size of the bank and set of macroeconomic variables affect the bank’s financial stability. Based on the analysis results, we imply relevant policies for the State Bank of Vietnam and commercial banks.

scholarly journals DEMOGRAPHIC BONUS ANALYSIS AND ECONOMIC GROWTH OF EAST JAVA

2018 ◽  
Vol 2 (1) ◽  
pp. 8-21
Author(s):  
Amirusholihin ◽  
Listiono
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Demographic Variables ◽  
Spatial Inequality ◽  
Solow Model ◽  
Dynamic Panel Model ◽  
Goods And Services ◽  
Panel Model ◽  
Working Age ◽  
The Impact

BKKBN predicts that Indonesia will get demographic bonus in 2020 until 2030. The question is whether the demographic bonus has a positive impact on the economy of East Java or even a negative impact. Based on data from BPS, by 2015 the workingage population in East Java is around 69.4 percent of the total population, while the child and old-age is 30.6 percent. The size of the working-age population is closely related to the amount of labor, which also greatly determines the amount of output on goods and services produced. This paper aims to explain how the impact of demographic bonuses on East Java's regional economy, based on the Solow model extended to include demographic variables. The analysis uses a dynamic panel model by 38 districts in East Java that have demographic bonuses in 2020 with GDP as a reference in determining the growth of economists. From these analyzes it can be seen the impact of demographic bonuses in East Java as an advantage or even create new spatial inequality between regions.

COMPETITION, RISK AND PROFITABILITY IN BANKING SYSTEM — EVIDENCE FROM VIETNAM

2020 ◽  
Vol 65 (06) ◽  
pp. 1491-1505
Author(s):  
THI HIEN NGUYEN ◽  
HA GIANG TRAN
Keyword(s):  
Information Technology ◽  
Risk Reduction ◽  
Commercial Banks ◽  
Banking System ◽  
Bank Competition ◽  
Competition Index ◽  
Data Set ◽  
Bank Profitability ◽  
Empirical Results ◽  
The Impact

The development in information technology results in a significant increase in bank competition. The question of whether increased competition improves bank profitability and risk reduction is important in many aspects. This paper analyzes the impact of competition on profitability and risk in the context of Vietnam using OLS estimator on data set of 37 Vietnamese commercial banks. The main results present that banks with a higher competition index tend to have higher profitability which is measured by ROE and NIM. In addition, our empirical results also show that banks tend to take on more risk when facing increased competition.

scholarly journals The Influence of Urban Haze Pollution on Urban Shrinkage in China – An Analysis of the Mediating Effect of the Labour Supply

2021 ◽  
Author(s):  
Xiaohong Liu
Keyword(s):  
Panel Data ◽  
Labour Supply ◽  
Mediating Effect ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
Influence Mechanism ◽  
Effect Model ◽  
Haze Pollution ◽  
The Impact

Abstract Panel data of 234 cities in China from 2011 to 2018 is used to measure the urban shrinkage index. PM2.5 is used as an indicator of haze pollution, and labour supply is the mediator. On this basis, the influence mechanism of haze pollution on urban shrinkage is analysed theoretically. Next, using the dynamic panel model and the mediating effect model, we empirically examine the impact of urban shrinkage on haze pollution and the mediating effect of labour supply. The main findings are as follows: haze pollution increases the degree of urban shrinkage, and labour supply plays a regulatory role in the process of haze pollution affecting urban shrinkage. According to our research, pertinent policies and suggestions are proposed to reduce both urban shrinkage and haze pollution.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE DAN BIAYA OPERASIONAL DAN PENDAPATAN OPERASIONAL (BOPO) TERHADAP STABILITAS KEUANGAN BANK UMUM SYARIAH DI INDONESIA TAHUN 2012-2017

2018 ◽  
Vol 6 (2) ◽  
pp. 160
Author(s):  
Lucky Nugroho ◽  
Herda Nezzim Bararah
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Financial Stability ◽  
Review Literature ◽  
Z Score ◽  
Operating Income ◽  
Good Corporate Governance ◽  
Operational Costs ◽  
Conceptual Paper ◽  
The Impact

This study aims to determine the impact or influence of good corporate governance and efficiency, which in this case the proxy by the ratio of operational costs and operating income to the financial stability of sharia commercial banks. The method in this research is a literature review or conceptual paper. Based on the results and review literature, it is known that the financial stability of sharia banks is a significant factor in maintaining reputation. Good corporate governance, operational costs, and operating income (BOPO) are factors that can support the financial stability of sharia commercial banks and in this study measured by Z-score. Therefore, financial stability in sharia banks should be the focus of the management of sharia commercial banks

scholarly journals Economic Diversity and the Resource Curse: A Dynamic Panel Model

2018 ◽  
Author(s):  
Fred Olayele ◽  
Kwok Soo
Keyword(s):  
Economic Growth ◽  
Resource Curse ◽  
Dynamic Panel Data ◽  
Policy Implications ◽  
Panel Data Models ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Economic Diversity ◽  
Panel Model ◽  
The Impact

This paper contributes to the debate on the impact of economic diversity and the resource curse on economic growth. We use dynamic panel data models on data on Canadian and US sub-national jurisdictions. We find evidence for a positive relationship between diversity and growth. Based on the Krugman Specialization Index, our analysis shows that the required threshold for not having the resource curse is 0.209. Above this threshold, the marginal contribution of natural resources to economic growth is lower for a more diversified regional economy than a less diversified one. We highlight the policy implications of these findings.

scholarly journals Effect of Bank Competition on Financial Stability: Empirical Evidence from Nepal

2018 ◽  
Vol 13 ◽  
pp. 19
Author(s):  
Surya Bahadur G.C. ◽  
Gyaneswar Sharma
Keyword(s):  
Financial Stability ◽  
Fixed Effects ◽  
Banking Sector ◽  
Banking System ◽  
System Stability ◽  
Annual Data ◽  
Bank Competition ◽  
Financial Industry ◽  
Banking Competition ◽  
The Impact

<p>There are two hypotheses about the relationship between competition and financial stability in the banking system: “competition-fragility” view argues that competition makes banks more likely totake excessive risks, thereby leading to fragility, while “competition-stability” view suggests that higherinterest rates in less competitive environments may cause borrowers to take higher risks,resulting in higher probability of non-performing loans and a more fragile system. This paper empirically examines the impact of competition on Nepalese banking system employing annual data of commercial banks from 1999 to 2012 period using fixed effects panel data model. The study period represents the era of rapid growth in financial institutions in Nepal. The HHI and n-bank concentration ratios are used as measure of competition while Z-index and nonperforming loans ratioare used as proxies of financial stability. The effects of macroeconomic factors and bank specific indicators are also taken into account. The results reveal that there is apositive relationship between greater banking competition and financial stability in Nepal, supporting the “competition-stability” view. Competition in banking sector is found to result in decrease in credit risk and contribute for financial stability. Mixed results have been achieved incase of the impact of bank competition on overall stability. The findings indicate that both higher concentration and higher competition are detrimental for stability. Hence, policymakers should facilitate further consolidation in the financial industry, however, it should be ensured that excessive consolidation doesn’t result in an environment that hinders competition. In addition,besides competition level in the banking system, macroeconomic situation of the country is found to be an important determinant of banking system stability.</p><p><em> </em><strong><em>Economic Literature</em></strong><em>, </em>Vol. XIII August 2016, page 19-31</p>

scholarly journals Comparing the Influence of Green Credit on Commercial Bank Profitability in China and Abroad: Empirical Test Based on a Dynamic Panel System Using GMM

2019 ◽  
Vol 7 (4) ◽  
pp. 64 ◽  
Author(s):  
Song ◽  
Deng ◽  
Wu
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Empirical Test ◽  
Generalized Method Of Moments ◽  
Capital Adequacy ◽  
Dynamic Panel ◽  
Bank Profitability ◽  
Dynamic Panel Model ◽  
Asset Size ◽  
The Impact

This study establishes a dynamic panel model for 12 Chinese-listed commercial banks and seven international commercial banks. More specifically, it examines the impact of green credit on the profitability of commercial banks and the differences between China and other countries while using the generalized method of moments. The research shows that the Equatorial Principles project-financing ratio of international banks positively affects bank profitability, while the ratio of green credit for Chinese commercial banks is inversely related to their profitability. Further, a comparative study of China and other countries highlights that the green credit business is at significantly different stages in China and the rest of the world. This study also finds that the profitability of China’s banking sector is positively affected by asset size, management expense ratio, cash ratio, and GDP growth rate, in addition to the common influencing factor of non-performing loan ratio, whereas asset size and capital adequacy ratio negatively affects the international banking sector. Drawing on these empirical conclusions, this study offers suggestions for the further development of green credit in Chinese commercial banks.

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