Economics at your fingertips  

Bank Complexity and Risk

Elizaveta Kamaraeva ()
Additional contact information
Elizaveta Kamaraeva: International College of Economics and Finance, National Research University Higher School of Economics

Russian Journal of Money and Finance, 2020, vol. 79, issue 3, 75-104

Abstract: The consolidation of banks into banking groups and holdings has been a prominent recent trend in Russia’s banking sector. To evaluate the effect of consolidation on the risk of a banking group, one needs a specific metric that captures organisational, business, and geographic complexity. In this paper, I consider different complexity types and proxies, and examine how complexity affects the risk of a banking group. Using data for 76 banking groups in Russia for 2015–2019, I find that for most of the complexity indicators there is a positive relationship between the organisational and business complexity on the one hand, and the risk of a banking group on the other hand. I also show that, in combination, different types of complexity have a positive effect on risk.

Keywords: bank complexity; risk taking; regulation; banking group; agency problem; diversification; Z-score (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.31477/rjmf.202003.75

Access Statistics for this article

Russian Journal of Money and Finance is currently edited by Ksenia Yudaeva

More articles in Russian Journal of Money and Finance from Bank of Russia Contact information at EDIRC.
Bibliographic data for series maintained by Olga Kuvshinova ().

Page updated 2021-01-15
Handle: RePEc:bkr:journl:v:79:y:2020:i:3:p:75-104