Do Capital Regulations and Risk-Taking Behavior Affect Bank Performance? Evidence from Bangladesh

Asian Economic and Financial Review

Aklima Akter^1¹ 

[1] Lecturer, Department of Business Administration, Port City International University, Chattogram, Bangladesh Associate Professor, Department of Accounting and Information Systems, Comilla University, Cumilla-3506, Bangladesh Assistant Professor, Department of Finance and Banking, Comilla University, Cumilla-3506, Bangladesh^1

关键词: Capital regulations;    Bank risk-taking;    Performance;    Dynamic panel model;    GMM;    TSLS;    Bangladesh.;   

DOI  :  10.18488/journal.aefr.2018.88.1042.1074

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This study develops and estimates a dynamic panel model to examine the simultaneous relationship between capital regulations and bank risk-taking in the Bangladeshi banking sector. Furthermore, the study investigates the impact of capital regulations and bank risk-taking on performance. The study investigates on 30 commercial banks of Bangladesh over the period 2002-2016 using two-step system GMM estimator. The study also uses two-stage least squares regression to check the robustness of the findings. The empirical evidence is found showing the significant negative association between capital regulations and risk-taking simultaneously. The study also finds evidence that there is a significant positive impact of capital regulations on bank performance. In contrast, the findings show that bank risk-taking has significant negative impacts on performance. The study expects that the results of this study will add value to the existing literature and will be significant for the future researcher and policymaker to decide in this regard.

【 授权许可】

CC BY