Competition and risk in the South East Asian commercial banking

Hong Liu (1) , Philip Molyneux (2) , Linh H Nguyen (3)

1 Glasgow Business SChool
2 Business School
3 Saigon Bank for Industry and Trade

This paper 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.

Mots clés: Social Sciences & Humanities

Domaines: Économie et finance quantitative [q-fin]

Hong Liu, Philip Molyneux, Linh H Nguyen. Competition and risk in the South East Asian commercial banking. Applied Economics, 2011, ⟨10.1080/00036846.2011.579066⟩. ⟨hal-00711456⟩