What Explains Bank Risk? Evidence from An Emerging Economy
Abstract
Banks face both systematic and idiosyncratic risks in their operations. Using annual hand collected bank level data of 39 commercial banks for the period 2000–2017; this study investigates the determinants of bank risk. Estimation results revealed a significant positive effect of inflation and exchange rate on bank risk while a significant negative effect was reported for bank operational efficiency, liquidity, profitability, age, economic growth, government borrowing and industry competition.
DOI: 10.7176/EJBM/11-18-16
Publication date:June 30th 2019
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ISSN (Paper)2222-1905 ISSN (Online)2222-2839
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