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Bank Capital Inflows, Institutional Development and Risk: Evidence from Publicity - Traded Banks in Asia
This paper examines the relationship between bank capital inflows and financial stability. Using a sample of publicly-traded commercial banks in Asia over the 2002-2008 period, the empirical results show that higher capital inflows in banking markets measured by the share of foreign liabilities in banking reduces systematic risk, but increases bank-specific risk and total risk. A deeper investigation further suggests that an increase in total risk and bank-specific risk is driven by strong institutional development. Specifically, higher foreign liabilities in banking exacerbate bank-specific risk and total risk in countries with greater economic freedom. Hence, the reinforcement of prudential regulations is necessary to overcome bank-specific risk and total risk, particularly when the countries move to a more liberal economic environment..Printed Journal
Call Number | Location | Available |
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BEMP1402 | PSB lt.dasar - Pascasarjana | 1 |
Penerbit | Jakarta Bank Indonesia., |
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Edisi | - |
Subjek | Economic freedom Banking Globalization Capital Market Measures of Risk |
ISBN/ISSN | 14108046 |
Klasifikasi | - |
Deskripsi Fisik | - |
Info Detail Spesifik | - |
Other Version/Related | Tidak tersedia versi lain |
Lampiran Berkas | Tidak Ada Data |