Do Well-Financial Holding Company Organized Banks in Taiwan Take More Risk?

Lai, Li-Hua; Hung, Li-Chin; Kuo, Chau-Jung

doi:10.1142/s0219091516500247

Cited by 3 publications

(2 citation statements)

References 62 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Although, bank size and loan to deposit ratio were shown to be negatively related with NPLs of the sample banks that is consistent with the findings of Hu et al (2004);Ćurak et al (2013) and Lai et al (2016), the relationship, however, was not significant. Lastly, our findings do not support evidence that macroeconomic factors influence NPLs as found by Messai and Jouini (2003), Bayar (2019), Kjosevski et al (2019), Alshebmi et al (2020) and many more.…”

Section: Findings and Discussionsupporting

confidence: 90%

Factors influencing non-performing loans: empirical evidence from commercial banks in Malaysia

Mahyoub¹,

Said²

2021

Pressacademia

View full text Add to dashboard Cite

Purpose-The purpose of this research is to examine the factors influencing non-performing loans (NPLs) ratio for Malaysian commercial banks from the period 2010 to 2018. Methodology-Bank-specific factors and macroeconomic factors were included in the analysis. Using panel data of fifteen commercial banks in Malaysia. Findings-The finding reveals that capital adequacy ratio is a significant factor in influencing the sample banks' level of non-performing loans. All other bank-specific factors employed in the analysis were found to be insignificant. In addition, based on the results provided by real gross domestic products and inflation, we can conclude that economic situation does not impact the non-performing loans level of the sample commercial banks. Conclusion-It has been concluded that the loan quality of the sample bank is questionable. In order to ensure an effective operating and high performance of banks, banks require a deep concentration on their loan quality that would not only generate income, but also minimize negative and ineffective outcome to the banks. In addition, this study can be valuable to supervisory authorities, governments, and the banking industries in forecasting non-performing loans as this study shows the determinants that shape the level of Non-performing loans.

show abstract

Section: Findings and Discussionsupporting

confidence: 90%

Factors influencing non-performing loans: empirical evidence from commercial banks in Malaysia

Mahyoub¹,

Said²

2021

Pressacademia

View full text Add to dashboard Cite

show abstract

“…Kao et al [12] argued that increasing the size and scope of financial products does not necessarily improve the performance of banks. Lai et al [13] found that non-FHC banks have higher loan ratios, which means smaller banks are more capable of generating profits. Cheng et al [14] claimed that non-FHC banks are more capable of increasing cost efficiency than FHC banks because of their awareness of firm expenditure and desire to diversify financial products.…”

mentioning

confidence: 99%

Business Sustainability Performance Evaluation for Taiwanese Banks—A Hybrid Multiple-Criteria Decision-Making Approach

Lin

Chang

2019

Sustainability

View full text Add to dashboard Cite

The Taiwanese government has encouraged bank privatization and the establishment of financial holding companies to improve banking sustainability and consolidate banks, insurance companies, and securities firms. It is important for bank decision makers to set policies that lead to sustainable development. However, the literature remains unclear about the types of banks that achieve greater business sustainability. This paper aims to (1) identify the criteria that affect banks’ business sustainability and (2) determine the most sustainable types of banks. This study uses a hybrid multiple-criteria decision-making approach on eighteen financial criteria for twenty-five Taiwanese listed banks with data from 2012 to 2016. The results show that non-performing loan ratio is the most critical factor. In addition, financial holding companies outperformed non-financial holding companies. Financial holding companies with insurance companies as their largest subsidiaries performed best. Private banks exceeded state-owned banks in sustainability. The results lead to two implications. First, banks should value risk over profitability and diversify financial products. Second, the government should continue to privatize banks. These findings suggest that bank managers implement an enterprise resource planning (ERP) system with a master plan, framework, and guidelines to help them track bank performance indicators to ensure sustainability.

show abstract

Determinants of Nonperforming Loans in Emerging Markets: Evidence from the MENA Region

Jabbouri

Naili

2019

Rev. Pac. Basin Finan. Mark. Pol.

View full text Add to dashboard Cite

Credit risk has severe impacts on banks’ performance, leading to financial and economic distress. To highlight this interesting issue, this study explores bank-specific and macroeconomic determinants of banks’ credit risk, denoted by the level of nonperforming loans (NPLs). The study includes 98 banks from 10 Middle East and North African (MENA) emerging countries spanning the period between 2003 and 2016. The analysis employs panel data estimation technique. Our results reveal that bank size, capital adequacy ratio, bank operating efficiency, profitability, GDP growth, unemployment, inflation, and public debt represent the main determinants of NPLs in MENA emerging markets. The results of this research have practical implications for bank managers, regulators, investors, and financial analysts. This study provides significant insights on the determinants of NPLs, which will allow bank managers to design credit policies that minimize borrowers’ defaults. The findings of the study are useful to policy makers to establish new and reinforce existing regulations to maintain the steadiness of the banking sector in MENA emerging countries.

show abstract

Do Well-Financial Holding Company Organized Banks in Taiwan Take More Risk?

Cited by 3 publications

References 62 publications

Factors influencing non-performing loans: empirical evidence from commercial banks in Malaysia

Factors influencing non-performing loans: empirical evidence from commercial banks in Malaysia

Business Sustainability Performance Evaluation for Taiwanese Banks—A Hybrid Multiple-Criteria Decision-Making Approach

Determinants of Nonperforming Loans in Emerging Markets: Evidence from the MENA Region

Contact Info

Product

Resources

About