publication . Article . Preprint . 2012

Depositor Discipline and Bank Risk-Taking Behavior: Evidence from the South-East Asian Financial Crisis

M. Kabir Hassan; M. Ershad Hussain;
Open Access
  • Published: 15 Feb 2012 Journal: SSRN Electronic Journal (eissn: 1556-5068, Copyright policy)
  • Publisher: Elsevier BV
Abstract
This paper examines whether the risk-taking behavior of commercial banks in five countries of South-East Asia changed after the Asian Crises of 1997. The paper utilizes the framework created by Gruben et al (1997, 1998, and 2003). It also examines the connection between the risk-taking behavior and depositor discipline of these banks after the Asian Crises of 1997. Based on bank level data from the Bank Scope, 2005 CD, the paper presents evidence that the state of depositor discipline is very weak in the selected countries even after the Asian Crises. Evidence also shows that the risk taking behavior of commercial banks did not change much before and after the A...
Subjects
free text keywords: Depositor discipline, commercial banks, Bank risk, South east asian, Level data, Financial system, Risk taking, Banking sector, Market discipline, Business, Economy, Perfect competition, Market structure

Equation Equation (11) : Dependent Variable : log of P W1

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