Noman, Abu Hanifa Md and Hassan, M. Kabir and Pervin, Sajeda and Isa, Che Ruhana and Sok-gee, Chan (2022) The mediating role of competition on deposit insurance and the risk-taking of banks in ASEAN countries. Research in International Business and Finance, 59. ISSN 0275-5319, DOI https://doi.org/10.1016/j.ribaf.2021.101551.
Full text not available from this repository.Abstract
We investigate the mediating function of competition on the association between deposit insurance and the risk-taking of banks during an economic meltdown. In our analysis, we address issues of deposit insurance, competition, bank risk-taking, and bank crisis with explicit deposit insurance and full coverage dummies. Deposit insurance reduces bank risk in the absence of competition by reducing both credit and insolvency risk; however, it exacerbates bank risk and weakens banking stability in a highly competitive market. It also shows that the banking instability in a competitive market is attenuated by deposit insurance during financial crisis. This study offers policy implications.
| Item Type: | Article |
|---|---|
| Funders: | Fundamental Research Grant Scheme (FRGS) [Grant No: FP076-2019A] |
| Uncontrolled Keywords: | Bank risk-taking; Competition; Crisis; Deposit insurance; Regulation |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HG Finance > Banking |
| Divisions: | Faculty of Arts and Social Sciences Institute of Advanced Studies Faculty of Business and Economics |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 26 Apr 2022 03:17 |
| Last Modified: | 26 Apr 2022 03:17 |
| URI: | http://eprints.um.edu.my/id/eprint/33767 |
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