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Leonard, Paul; Biswas, Rita

doi:10.1023/a:1007954410976

Cited by 7 publications

(2 citation statements)

References 11 publications

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“…H0: Capital adequacy ratio (CAR) is not negatively and not significantly affects the level of bank risk taking, as shown in table the null hypothesis is rejected and the alternative hypothesis is accepted, which indicates that capital adequacy ratio (CAR) is negatively and significantly affects the level of bank risk taking. The result of the first hypothesis regarding the negative effect of capital adequacy ratio on bank risk taking is favorable for (Konishi et al, 2004), (Zong-yi et al, 2008), and (Leonard et al, 1998). All of these studies proved that there is a significant negative effect of capital adequacy ratio on bank risk taking.…”

Section: First Hypothesismentioning

confidence: 96%

“…It was found that the change in capital is significantly negative with risk taking. (Leonard et al, 1998), investigated the changes in the risk-taking behavior of New York State chartered saving banks resulting from regulatory changes, they found that increasing regulatory scrutiny limiting the risk-taking of saving banks after 1988. (Buch et al, 2008), showed that the absence of banks' supervision could give banks the opportunity to shift risk from themselves to supervisors.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Determinants of Bank Risk Taking: Evidence From Jordan

Awartany¹,

Al-Zubi

2020

IJFR

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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).

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Section: First Hypothesismentioning

confidence: 96%

Section: Literature Reviewmentioning

confidence: 99%

The Determinants of Bank Risk Taking: Evidence From Jordan

Awartany¹,

Al-Zubi

2020

IJFR

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Returns to Retail Banking and Payments

2011

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The present paper examines the fundamental relationship between the country-level infrastructure of the retail payment market and overall bank performance. Using data from across 27 European markets over the period 2000-07, the results confirm that the performance of banks in countries with more developed retail payment service markets is better. This relationship is stronger in countries with a relatively high adoption of retail payment transaction technologies. Retail payment transaction technology itself can also improve bank performance, and evidence shows that heterogeneity in retail payment instruments is associated with enhanced bank performance. Similarly, higher usage of electronic retail payment instruments seems to stimulate banking business. We also show that retail payment services have a more significant impact on savings and cooperative bank performance, although they have a positive influence on the performance of commercial banks as well. Additionally, the findings reveal that the impact of retail services on bank performance is more pronounced through fee income, although their impact through interest income is also positive. Finally, an effective payment service market is found to be associated with higher bank stability. Our findings are robust to different regression specifications.

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Collateral, type of lender and relationship banking as determinants of credit risk

Jiménez

Saurina

2004

Journal of Banking & Finance

320

162

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This paper analyses the determinants of the probability of default (PD) of bank loans. We focus the discussion on the role of a limited set of variables (collateral, type of lender and bank-borrower relationship) while controlling for the other explanatory variables. The study uses information on the more than three million loans entered into by Spanish credit institutions over a complete business cycle (1988)(1989)(1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000) collected by the Bank of Spain's Credit Register (Central de Informaci on de Riesgos). We find that collateralised loans have a higher PD, loans granted by savings banks are riskier and, finally, that a close bank-borrower relationship increases the willingness to take more risk.

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Cited by 7 publications

References 11 publications

The Determinants of Bank Risk Taking: Evidence From Jordan

The Determinants of Bank Risk Taking: Evidence From Jordan

Returns to Retail Banking and Payments

Collateral, type of lender and relationship banking as determinants of credit risk

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