Sensibilité des banques aux chocs macroéconomiques: La diversification apporte-t-elle toujours des gains ? Cas des banques canadiennes

Mario Fortin (mario.fortin@usherbrooke.ca) and Didelle Dinamona (didelle.dinamona.dilou@univ-st-etienne.fr)
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Didelle Dinamona: CREUSET, Université de St-Etienne

Cahiers de recherche from Departement d'économique de l'École de gestion à l'Université de Sherbrooke

Abstract: This article investigates the sensitivity of Canadian banks to macroeconomic shocks in terms of risk and profitability. We identify the impact of diversification strategy on Canadian banks which are not allowed to enlarge completely their activities. Using a sample of the six largest Canadian banks over the period 1996 to 2006 and panel data methodology, we find that they are sensitive to macroeconomics shocks. Furthermore, our findings suggest that despite the negative impact of non interest income on bank profitability, the six Canadian banks can exploit economies of scale and scope by increasing their size, enabling them to withstand macroeconomic shocks.

Keywords: Canadian banks; diversification; macroeconomic shocks; panel data (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2008
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http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0824.pdf First version, 2008 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:shr:wpaper:08-24

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