Download This PaperMarket Power and the Risk-Taking of Banks: Some Semiparametric Evidence From Emerging Economies
37 Pages Posted: 25 Jan 2018
Date Written: January 25, 2018
Abstract
We investigate the nexus between the market power of banks and their risk-taking, using bank-level data from 35 emerging economies during the period of 2000-2014. Under a Bayesian framework, we employ the semiparametric method, which allows for a nonlinear risk impact of banks’ market power. Our results suggest a significant nonlinear relationship between the market power and the risk-taking of banks.
Keywords: Market Power, Bank Risk-Taking, Emerging Economies
JEL Classification: G21, G15, D53
Suggested Citation: Suggested Citation
Jeon, Bang Nam and Wu, Ji and Guo, Mengmeng and Chen, Minghua, Market Power and the Risk-Taking of Banks: Some Semiparametric Evidence From Emerging Economies (January 25, 2018). Asian Finance Association (AsianFA) 2018 Conference, Available at SSRN: https://ssrn.com/abstract=3109298 or http://dx.doi.org/10.2139/ssrn.3109298
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