Zheng Changjun, Chowdhury Md Mohiuddin, Gupta Anupam Das, Islam Md Nazmul
School of Management, Huazhong University of Science and Technology, Wuhan, P.R. China.
Department of Finance, University of Chittagong, Chattogram, Bangladesh.
PLoS One. 2024 Dec 6;19(12):e0311428. doi: 10.1371/journal.pone.0311428. eCollection 2024.
This study aims to investigate the simultaneous relationship between bank risk and capital, specifically examining how competition and ownership jointly influence this relationship. We employed the two-step system generalized method of moments to address concerns regarding endogeneity and unobserved heteroscedasticity. Based on data from 44 commercial banks in Bangladesh from 2010 to 2021, our findings reveal several key insights: (I) There is a significant non-linear bidirectional relationship between bank risk and capital: capital exhibits a U-shaped effect on risk, while risk has a non-linear negative impact on capital; (II) in highly contested markets, banks hold higher levels of capital, and heightened competition reduces the risk appetite of commercial banks; while less competition has the opposite effect; (III) private and Islamic commercial banks are more risk-averse than state-owned and conventional ones, and (IV) Private and Islamic banks with strong capital positions in a competitive market can better manage risks than state-owned and conventional banks. However, maintaining higher capital ratios in competitive environments is more challenging for state-owned and Islamic banks than private-owned and conventional commercial banks. These results align with the moral hazard hypothesis, competition fragility hypothesis, and the political view of state ownership. Significant insights from the study will fuel the regulators in shaping policies and regulations surrounding emerging countries like Bangladesh, particularly regarding risk, capital, competition, and ownership policies.
本研究旨在调查银行风险与资本之间的同步关系,具体考察竞争和所有权如何共同影响这种关系。我们采用两步系统广义矩估计法来解决内生性和未观测到的异方差问题。基于2010年至2021年孟加拉国44家商业银行的数据,我们的研究结果揭示了几个关键见解:(I)银行风险与资本之间存在显著的非线性双向关系:资本对风险呈现U形效应,而风险对资本具有非线性负面影响;(II)在竞争激烈的市场中,银行持有更高水平的资本,竞争加剧会降低商业银行的风险偏好;而竞争较少则会产生相反的效果;(III)私营和伊斯兰商业银行比国有和传统商业银行更厌恶风险,以及(IV)在竞争市场中资本状况良好的私营和伊斯兰银行比国有和传统银行能更好地管理风险。然而,在竞争环境中维持较高的资本比率对国有和伊斯兰银行来说比私有和传统商业银行更具挑战性。这些结果与道德风险假说、竞争脆弱性假说以及国有制的政治观点相一致。该研究的重要见解将促使监管机构制定围绕孟加拉国等新兴国家的政策和法规,特别是在风险、资本、竞争和所有权政策方面。