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Competition and risk in the South East Asian commercial banking

Author

Listed:
  • Hong Liu

    (Glasgow Business SChool - University of Glasgow)

  • Philip Molyneux

    (Business School - Bangor University)

  • Linh H Nguyen

    (Saigon Bank for Industry and Trade - Saigon Bank for Industry and Trade)

Abstract

This paper investigates the effects of competition on bank risk-taking behaviour in four South East Asian countries (Indonesia, Malaysia, Philippines and Vietnam). Our main finding is that competition does not increase bank risk-taking behaviour and the results appear robust to different model specifications, estimation approaches and variable construction. We also find that concentration is inversely related to bank risk whereas regulatory restrictions positively influence bank risk-taking.

Suggested Citation

  • Hong Liu & Philip Molyneux & Linh H Nguyen, 2011. "Competition and risk in the South East Asian commercial banking," Post-Print hal-00711456, HAL.
    • Handle: RePEc:hal:journl:hal-00711456
    DOI: 10.1080/00036846.2011.579066
    Note: View the original document on HAL open archive server: https://hal.science/hal-00711456
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