Economic uncertainty, macroprudential policies and bank risk: Evidence from emerging Asian economies

Bang Jeon, Yao Yao, Minghua Chen and Ji Wu

No 2021-6, School of Economics Working Paper Series from LeBow College of Business, Drexel University

Abstract: This paper examines the impact of macroprudential policies on bank risk under economic uncertainty in emerging Asian economies. By using bank-level panel data for selected emerging Asian economies during the period 2000-2016, we present consistent evidence that bank risk increases with economic uncertainty, while macroprudential measures play an ameliorative role to the uncertainty-induced bank risk. We confirm that these findings are robust against a series of alternative measures of economic uncertainty and bank risk, and alternative econometric tools to address possible endogeneity concerns.

Keywords: Economic uncertainty; bank risk; macroprudential policy; emerging Asia (search for similar items in EconPapers)
JEL-codes: G15 G21 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2021-01-16, Revised 2021-10-01
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:ris:drxlwp:2021_006

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