Bank- and country-based determinants of banks’ performance in Asia

Paolo Saona and Md. Abul Kalam Azad

Journal of the Asia Pacific Economy, 2018, vol. 23, issue 3, 428-446

Abstract: This paper examines the joint impact of bank- and country-based drivers of performance of banks in 11 Asian countries. The panel data technique is used to deal with possible endogeneity issues and the heterogeneity of individual banks. We find evidence that the ownership structure and the capital ratio are critical determinants of the banks’ profitability. The revenue diversification impacts negatively on the net interest margin. Examining the institutional factors of banks’ performance, we find that enhanced financial and regulatory structures reduce the capacity to generate non-competitive, abnormal profits. Those most affected are the consumers, who bear the burden of higher prices resulting from weak competition.

Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13547860.2018.1469585 (text/html)
Access to full text is restricted to subscribers.

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:taf:rjapxx:v:23:y:2018:i:3:p:428-446

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjap20

DOI: 10.1080/13547860.2018.1469585

Access Statistics for this article

Journal of the Asia Pacific Economy is currently edited by Leong Liew

More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().