Competition and risk in South East Asian commercial banking |
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| Authors: | Hong Liu Linh H. Nguyen |
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| Affiliation: | 1. Glasgow Business School, University of Glasgow , Glasgow G12 8QQ, UK;2. Saigon Bank for Industry and Trade , 2C Pho Duc Chinh, District 1, Hochiminh City, Vietnam |
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| Abstract: | This article investigates the effects of competition on bank risk taking behaviour in four South East Asian countries (Indonesia, Malaysia, Philippines and Vietnam). Our main finding is that competition does not increase bank risk-taking behaviour and the results appear robust to different model specifications, estimation approaches and variable construction. We also find that concentration is inversely related to bank risk whereas regulatory restrictions positively influence bank risk-taking. |
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| Keywords: | bank competition banking system fragility financial stability regulation |
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