Non-interest activities affect the bank risk in the Asia Pacific region

This paper’s main objective is to investigate whether the bank non-interest activities affect the bank risk between developed and developing markets in the Asia Pacific region banking sector over the years 2000-2015. We employ the pooled OLS and panel regression to assess the effect on bank risk thr...

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Main Authors: Koh, Chin Wei, Ab Razak, Nazrul Hisyam, Kamarudin, Fakarudin
Format: Conference or Workshop Item
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2017
Online Access:http://psasir.upm.edu.my/id/eprint/58704/1/7-CHIN_WEI_KOH.pdf.pdf
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author Koh, Chin Wei
Ab Razak, Nazrul Hisyam
Kamarudin, Fakarudin
author_facet Koh, Chin Wei
Ab Razak, Nazrul Hisyam
Kamarudin, Fakarudin
author_sort Koh, Chin Wei
collection UPM
description This paper’s main objective is to investigate whether the bank non-interest activities affect the bank risk between developed and developing markets in the Asia Pacific region banking sector over the years 2000-2015. We employ the pooled OLS and panel regression to assess the effect on bank risk through 61 representative banks from Australia, Hong Kong, Korea, Malaysia, Singapore and Thailand. We categorize Australia, Hong Kong and Singapore as developed countries while Malaysia, Korea, and Thailand as developing countries. The empirical findings indicate that the bank non-interest based activities do have overall impact on Asia Pacific banks’ risk. Once we further study by segregate into developed and developing countries segment, we only able to find that the impact do significant on developing countries only not on developed countries. We also find that the bank risk also affected by subprime crisis for Asia Pacific countries by factor in bank non-interest activities. The findings from this study are expected to contribute significantly toward decision-making for regulators, policymakers, bank managers, investors, and also to the existing knowledge on performance of the Asia Pacific banking sector.
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spelling upm.eprints-587042018-01-29T10:05:42Z http://psasir.upm.edu.my/id/eprint/58704/ Non-interest activities affect the bank risk in the Asia Pacific region Koh, Chin Wei Ab Razak, Nazrul Hisyam Kamarudin, Fakarudin This paper’s main objective is to investigate whether the bank non-interest activities affect the bank risk between developed and developing markets in the Asia Pacific region banking sector over the years 2000-2015. We employ the pooled OLS and panel regression to assess the effect on bank risk through 61 representative banks from Australia, Hong Kong, Korea, Malaysia, Singapore and Thailand. We categorize Australia, Hong Kong and Singapore as developed countries while Malaysia, Korea, and Thailand as developing countries. The empirical findings indicate that the bank non-interest based activities do have overall impact on Asia Pacific banks’ risk. Once we further study by segregate into developed and developing countries segment, we only able to find that the impact do significant on developing countries only not on developed countries. We also find that the bank risk also affected by subprime crisis for Asia Pacific countries by factor in bank non-interest activities. The findings from this study are expected to contribute significantly toward decision-making for regulators, policymakers, bank managers, investors, and also to the existing knowledge on performance of the Asia Pacific banking sector. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/58704/1/7-CHIN_WEI_KOH.pdf.pdf Koh, Chin Wei and Ab Razak, Nazrul Hisyam and Kamarudin, Fakarudin (2017) Non-interest activities affect the bank risk in the Asia Pacific region. In: Global Conference on Business and Economics Research (GCBER) 2017, 14-15 Aug. 2017, Universiti Putra Malaysia, Serdang, Selangor. (pp. 101-111). http://www.econ.upm.edu.my/upload/dokumen/20170816174303014-CHIN_WEI_KOH.pdf.pdf
spellingShingle Koh, Chin Wei
Ab Razak, Nazrul Hisyam
Kamarudin, Fakarudin
Non-interest activities affect the bank risk in the Asia Pacific region
title Non-interest activities affect the bank risk in the Asia Pacific region
title_full Non-interest activities affect the bank risk in the Asia Pacific region
title_fullStr Non-interest activities affect the bank risk in the Asia Pacific region
title_full_unstemmed Non-interest activities affect the bank risk in the Asia Pacific region
title_short Non-interest activities affect the bank risk in the Asia Pacific region
title_sort non interest activities affect the bank risk in the asia pacific region
url http://psasir.upm.edu.my/id/eprint/58704/1/7-CHIN_WEI_KOH.pdf.pdf
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