The long-term role of non-traditional banking in profitability and risk profiles: Evidence from a panel of U.S. banking institutions
Journal article
Authors | Apergis, Nicholas |
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Abstract | The goal of this empirical study is to identify empirically and on a panel basis how non-traditional bank activities affect directly the profitability and risk profiles of the financial institutions involved in such activities. Through a dataset that covers 1725 U.S. financial institutions involved in non-traditional bank activities spanning the period 2000–2013 and the methodology of panel cointegration, the empirical findings document that non-traditional bank activities exert a positive effect on both the profitability and the insolvency risk. The results could be important for regulators given they could serve as a pre-warning signal that sends a clear message to regulators about the potential systemic risk that exists within the financial markets. |
Keywords | Non-traditional bank activities; Profitability; Insolvency risk; U.S. banks; Panel data |
Year | 2014 |
Journal | Journal of International Money and Finance |
Publisher | Elsevier |
ISSN | 0261-5606 |
Web address (URL) | http://hdl.handle.net/10545/623404 |
http://creativecommons.org/licenses/by-nc-nd/4.0/ | |
hdl:10545/623404 | |
Publication dates | 18 Mar 2014 |
Publication process dates | |
Deposited | 28 Jan 2019, 17:48 |
Contributors | University of Piraeus |
File | File Access Level Open |
File | File Access Level Open |
https://repository.derby.ac.uk/item/93v14/the-long-term-role-of-non-traditional-banking-in-profitability-and-risk-profiles-evidence-from-a-panel-of-u-s-banking-institutions
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