会议专题

Bank business diversification,asset size differential and bank stability: evidence from recent US data

In this paper, we investigate the linkage between bank business diversification and bank stability with a dataset that covers 7246 US commercial banks over the period 1999-2008. We use both income diversification and asset diversification measures to highlight the possible heterogeneity of two types of non-interest income generating activities: fee-based banking services and managing non-loan earning assets, and define a moving average form of the bank stability measure-the Z score-to better utilize the data. One main conclusion is that while overall the gains from bank diversification may not be enough to match the harms associated with high-risk activities, expansion in non-loan earning assets and expansion in fee-based bank services may differ substantially in their effects on bank stability. Another main conclusion is that the impacts of bank business diversification on bank stability may indeed have asset size differential, as we find the gains and harms associated with bank business diversification tended to larger as bank asset size grew.

Bank Diversification Asset Size Differential Bank Stability

Yanhong Zhang Jun Huang

International Education Center/Department of Economic Engineering Kyushu University School of Econom School of Economics Renmin University of China

国际会议

International Conference on Financialization,Financial Systems and Economic Development(金融化、金融制度与经济发展国际研讨会)

北京

英文

231-231

2010-11-01(万方平台首次上网日期,不代表论文的发表时间)