IDEAS home Printed from https://ideas.repec.org/h/spr/lnopch/978-981-97-4137-3_3.html
   My bibliography  Save this book chapter

Bank Resilience and Risk-Taking Behavior: Evidence from Commercial Banks in China

In: Ieis 2023

Author

Listed:
  • Yao Wu

    (Bank Sinopac (China) Ltd.)

  • Yincheng Li

    (Macau University of Science and Technology)

  • Zixuan Zhou

    (Macau University of Science and Technology)

  • Yiran Ji

    (Macau University of Science and Technology)

  • Linjie Fu

    (Macau University of Science and Technology)

  • Rui Zhang

    (Shanghai Pudong Development Bank)

Abstract

Due to external adverse shocks such as COVID-19 and the Russia-Ukraine war, bank resilience is a vital measure used to defend against risk-taking. Using annual data from 42 listed commercial banks in China over the period 2013 to 2022, the study employs the Z-score as a dependent variable to measure risk-taking and the bank resilience index as an independent variable to measure capability to defend against bank risk-taking. In addition, the study adds bank-specific factors of bank size, net income margin, inefficiency, ratio of loans to deposits, cash flow, and diversification as control variables into the regression model. The empirical results of the study show that bank resilience could lower risk-taking, and bank size has a promoting effect on the relationship between bank resilience and risk-taking. As for heterogeneity analysis, banks with high-BRI have greater capability to defend against risk-taking than banks with low-BRI. Furthermore, the bank resilience of non-state-owned banks could reduce risk-taking, while state-owned banks have no impact of bank resilience on risk- taking.

Suggested Citation

  • Yao Wu & Yincheng Li & Zixuan Zhou & Yiran Ji & Linjie Fu & Rui Zhang, 2024. "Bank Resilience and Risk-Taking Behavior: Evidence from Commercial Banks in China," Lecture Notes in Operations Research, in: Menggang Li & Hua Guowei & Anqiang Huang & Xiaowen Fu & Dan Chang (ed.), Ieis 2023, pages 24-35, Springer.
    • Handle: RePEc:spr:lnopch:978-981-97-4137-3_3
    DOI: 10.1007/978-981-97-4137-3_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lnopch:978-981-97-4137-3_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.