The interrelationships between bank profitability, bank stability and loan growth in Southeast Asia
The purpose of this study is to examine the relationship between bank profitability, bank stability, and loan growth may exist in Southeast Asia, including a sample of 79 listed banks in five countries in Southeast Asia (ASEAN-5) from 2006 to 2019. Using a simultaneous equations model (SEM) with the...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2022.2084977 |
| _version_ | 1811243253203206144 |
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| author | Dat T Nguyen Tu DQ Le |
| author_facet | Dat T Nguyen Tu DQ Le |
| author_sort | Dat T Nguyen |
| collection | DOAJ |
| description | The purpose of this study is to examine the relationship between bank profitability, bank stability, and loan growth may exist in Southeast Asia, including a sample of 79 listed banks in five countries in Southeast Asia (ASEAN-5) from 2006 to 2019. Using a simultaneous equations model (SEM) with the generalized method of moments is used to examine the links bank profitability, bank stability and loan growth. The findings show a two-]way relationship between these variables. More specifically, bank profitability and stability are positively related. Bank stability and loan growth are inversely connected. Furthermore, the findings demonstrate that bank profitability and loan growth are positively related. These findings, however, suggest a trade-off in banks’ pursuit of large loan growth. Our findings, however, have implications for bank supervisors, policymakers, and bank managers. |
| first_indexed | 2024-04-12T14:04:12Z |
| format | Article |
| id | doaj.art-6729136429e84be8bf2fab17786bcfd5 |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-04-12T14:04:12Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-6729136429e84be8bf2fab17786bcfd52022-12-22T03:30:07ZengTaylor & Francis GroupCogent Business & Management2331-19752022-12-019110.1080/23311975.2022.2084977The interrelationships between bank profitability, bank stability and loan growth in Southeast AsiaDat T Nguyen0Tu DQ Le1Institute for Development & Research in Banking Technology, University of Economics and Law, Ho Chi Minh City, VietnamInstitute for Development & Research in Banking Technology, University of Economics and Law, Ho Chi Minh City, VietnamThe purpose of this study is to examine the relationship between bank profitability, bank stability, and loan growth may exist in Southeast Asia, including a sample of 79 listed banks in five countries in Southeast Asia (ASEAN-5) from 2006 to 2019. Using a simultaneous equations model (SEM) with the generalized method of moments is used to examine the links bank profitability, bank stability and loan growth. The findings show a two-]way relationship between these variables. More specifically, bank profitability and stability are positively related. Bank stability and loan growth are inversely connected. Furthermore, the findings demonstrate that bank profitability and loan growth are positively related. These findings, however, suggest a trade-off in banks’ pursuit of large loan growth. Our findings, however, have implications for bank supervisors, policymakers, and bank managers.https://www.tandfonline.com/doi/10.1080/23311975.2022.2084977Bank stabilityprofitabilityloan growthSoutheast AsiaSEM |
| spellingShingle | Dat T Nguyen Tu DQ Le The interrelationships between bank profitability, bank stability and loan growth in Southeast Asia Cogent Business & Management Bank stability profitability loan growth Southeast Asia SEM |
| title | The interrelationships between bank profitability, bank stability and loan growth in Southeast Asia |
| title_full | The interrelationships between bank profitability, bank stability and loan growth in Southeast Asia |
| title_fullStr | The interrelationships between bank profitability, bank stability and loan growth in Southeast Asia |
| title_full_unstemmed | The interrelationships between bank profitability, bank stability and loan growth in Southeast Asia |
| title_short | The interrelationships between bank profitability, bank stability and loan growth in Southeast Asia |
| title_sort | interrelationships between bank profitability bank stability and loan growth in southeast asia |
| topic | Bank stability profitability loan growth Southeast Asia SEM |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2022.2084977 |
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