Bhowmik Probir Kumar, Sarker Niluthpaul
School of Management, Huazhong University of Science and Technology, Wuhan, 430074, China.
Department of Accounting and Information Systems, University of Barishal, Barishal, 8200, Bangladesh.
Heliyon. 2021 May 14;7(5):e07036. doi: 10.1016/j.heliyon.2021.e07036. eCollection 2021 May.
During the last few decades, the world financial crisis sheds on the bank risk, which creates a direct threat to the existence of banks. This paper investigates the relationship between bank risk and loan growth in the South Asian economies. The study has collected data from BankFocus of 118 commercial banks from 2011 to 2019. This study explores three hypotheses explaining the relation between (i) Bank Risk and Loan Growth; (ii) Loan growth and Bank Profitability; and (iii) Loan growth and bank solvency. Results show that loan growth can induce bank risk in the South Asian economic region. At the same time, Banks' solvency and profitability are correlated to bank risk with statistical significance. Primarily OLS has been applied, followed by GMM estimation. Non-Performing Loan (NPL) has been used as the proxy of bank risk. Further, to check the robustness of the investigation, we have used ZSCORE as a replacement to NPL. The results derived from regressions can put light on banks' poor performance in the South Asian counties and, simultaneously, may set guidance for policymakers of emerging economies.
在过去几十年里，世界金融危机凸显了银行风险，这对银行的生存构成了直接威胁。本文研究了南亚经济体中银行风险与贷款增长之间的关系。该研究收集了2011年至2019年期间118家商业银行的BankFocus数据。本研究探讨了三个假设，以解释（i）银行风险与贷款增长之间的关系；（ii）贷款增长与银行盈利能力之间的关系；以及（iii）贷款增长与银行偿付能力之间的关系。结果表明，在南亚经济区域，贷款增长会引发银行风险。同时，银行的偿付能力和盈利能力与银行风险具有统计学意义上的相关性。主要应用了普通最小二乘法（OLS），随后进行了广义矩估计（GMM）。不良贷款（NPL）被用作银行风险的代理变量。此外，为检验调查结果的稳健性，我们使用ZSCORE替代不良贷款。回归结果可以揭示南亚国家银行的不佳表现，同时也可能为新兴经济体的政策制定者提供指导。
