State ownership and bank equity in the Asia-Pacific region

Mahmud Hossain, Pankaj Jain and Santanu Mitra

Pacific-Basin Finance Journal, 2013, vol. 21, issue 1, 914-931

Abstract: Our study examines the effectiveness of worldwide banking regulations and government involvement in providing a balanced risk–reward trade-off to bank shareholders during both normal time periods and the periods of financial crisis. Ownership structure varies across world regions with government holding bigger stakes in the Asia-Pacific region and Latin America than in North America. Partial state ownership of banks, particularly in the Asia-Pacific region, helped avoid sharp losses during financial crises without sacrificing returns in normal periods. The restrictions on the types of activities reduce bank riskiness and wealth losses during the crisis period but they also stifle innovations and returns during normal time periods.

Keywords: State ownership; Bank regulation; International; Asia-Pacific; Financial crisis (search for similar items in EconPapers)
JEL-codes: E6 F5 M4 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:21:y:2013:i:1:p:914-931

DOI: 10.1016/j.pacfin.2012.06.004

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