The impact of bancassurance on efficiency and profitability of banks: Evidence from the banking industry in Taiwan

Jin-Lung Peng, Vivian Jeng, Jennifer L. Wang and Yen-Chih Chen

Journal of Banking & Finance, 2017, vol. 80, issue C, 1-13

Abstract: We set out in this study to investigate whether bancassurance business leads to improvements in the efficiency and profitability of banks. We examine the positive impacts on the system using actual data provided by a unique database on banks engaging in bancassurance business in Taiwan between 2004 and 2012. Our results reveal that banks with greater involvement in bancassurance business generally tend to experience improvements in their efficiency, and thus also accrue greater profits. Our empirical results provide evidence to support that bancassurance business offers substantial benefits for banks, ultimately leading to an increase in shareholder value. Finally, our results also reveal that the adoption of a diversification strategy in bancassurance can impact bank performance.

Keywords: Bancassurance; Banking; Efficiency; Profitability (search for similar items in EconPapers)
JEL-codes: G21 G22 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378426617300717
Full text for ScienceDirect subscribers only

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: https://EconPapers.repec.org/RePEc:eee:jbfina:v:80:y:2017:i:c:p:1-13

DOI: 10.1016/j.jbankfin.2017.03.013

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().