How do funding diversity and non-performing loans affect bank performance in different economic cycles?

References

• Abbas, F., & Ali, S. (2021). Dynamics of diversification and banks’ risk-taking and stability: Empirical analysis of commercial banks. Managerial and Decision Economics, 43(4), 1–21. https://doi.org/10.1002/mde.3434
   Web of Science ®Google Scholar
• Abbas, F., Iqbal, S., & Aziz, B. (2019). The impact of bank capital, bank liquidity and credit risk on profitability in postcrisis period: ‎ a comparative study of US and Asia. Cogent Economics & Finance, 7(1), 1605683. https://doi.org/10.1080/23322039.2019.1605683
   Web of Science ®Google Scholar
• Acharya, V. V., Hasan, I., & Saunders, A. (2006). Should Banks Be Diversified? Evidence from Individual Bank Loan Portfolios. The Journal of Business, 79(3), 1355–1412. https://doi.org/10.1086/500679
   Web of Science ®Google Scholar
• Ahmed, A., Mohammed, A., & Adisa, A. (2014). Loan Loss Provision and Earnings Management in Nigerian Deposit Money Banks. Mediterranean Journal of Social Sciences, 5(17), 49. https://doi.org/10.5901/mjss.2014.v5n7p346
   Google Scholar
• Alnabulsi, K., Kozarević, E., & Hakimi, A. (2022). Assessing the determinants of non-performing loans under financial crisis and health crisis: Evidence from the MENA banks. Cogent Economics & Finance, 10(1), 2124665. https://doi.org/10.1080/23322039.2022.2124665
   Web of Science ®Google Scholar
• Assaf, A. G., Matousek, R., & Tsionas, E. G. (2013). Turkish bank efficiency: Bayesian estimation with undesirable outputs. Journal of Banking & Finance, 37(2), 506–517. https://doi.org/10.1016/j.jbankfin.2012.09.009
   Web of Science ®Google Scholar
• Batten, J., & Vo, X. V. (2019). Determinants of bank profitability—Evidence from Vietnam. Emerging Markets Finance & Trade, 55(6), 1417–1428. https://doi.org/10.1080/1540496X.2018.1524326
   Web of Science ®Google Scholar
• Beck, T., Cull, R., & Jerome, A. (2005). Bank privatization and performance: Empirical evidence from Nigeria. Journal of Banking & Finance, 29(8–9), 2355–2379. https://doi.org/10.1016/j.jbankfin.2005.03.018
   Web of Science ®Google Scholar
• Bischof, J., Rudolf, N., & Schmundt, W. (2022). How do non-performing loans evolve along the economic cycle? The role of macroeconomic conditions and legal efficiency. European Accounting Review, 31(5), 1149–1174. https://doi.org/10.1080/09638180.2022.2071960
   Web of Science ®Google Scholar
• Bolarinwa, S. T., Olayeni, R. O., & Vo, X. V. (2021). Is there a nonlinear relationship between non-performing loans and bank profitability? Evidence from dynamic panel threshold. Managerial and Decision Economics, 42(3), 649–661. https://doi.org/10.1002/mde.3262
   Web of Science ®Google Scholar
• Christopoulos, A. G., Dokas, I. G., Katsimardou, S., & Spyromitros, E. (2020). Assessing banking sectors’ efficiency of financially troubled Eurozone countries. Research in International Business and Finance, 52, 101121. https://doi.org/10.1016/j.ribaf.2019.101121
   Web of Science ®Google Scholar
• Dao, K. O., Nguyen, T. Y., Hussain, S., & Nguyen, V. C. (2020). Factors affecting non-performing loans of commercial banks: The role of bank performance and credit growth (No. 6ykd8). Center for Open Science, 15(3), 44–54. https://doi.org/10.31219/osf.io/6ykd8
   Google Scholar
• Duan, Y., & Niu, J. (2020). Liquidity creation and bank profitability. The North American Journal of Economics & Finance, 54, 101250. https://doi.org/10.1016/j.najef.2020.101250
   Web of Science ®Google Scholar
• Duong, K. D., Vu, D. N., Le, K. D., & Nguyen, D. V. (2022). Do Political Connections and Bank Funding Diversity Increase Non-Performing Loans: New Evidence from the Bayesian Approach. Montenegrin Journal of Economics, 18(4), 79–92. https://doi.org/10.14254/1800-5845/2022.18-4.8
   Web of Science ®Google Scholar
• Eljelly, A. M. (2004). Liquidity‐profitability trade-off: An empirical investigation in an emerging market. International Journal of Commerce & Management, 14(2), 48–61. https://doi.org/10.1108/10569210480000179
   Google Scholar
• Fidanoski, F., Choudhry, M., Davidović, M., & Sergi, B. S. (2018). What does affect profitability of banks in Croatia? Competitiveness Review: An International Business Journal, 28(4), 338–367. https://doi.org/10.1108/CR-09-2016-0058
   Web of Science ®Google Scholar
• Franck, R., & Krausz, M. (2007). Liquidity risk and bank portfolio allocation. International Review of Economics & Finance, 16(1), 60–77. https://doi.org/10.1016/j.iref.2004.09.007
   Google Scholar
• Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1–37. https://doi.org/10.1111/j.1755-053X.2009.01026.x
   Web of Science ®Google Scholar
• Greene, W. (2005). Fixed and random effects in stochastic frontier models. Journal of Productivity Analysis, 23(1), 7–32. https://doi.org/10.1007/s11123-004-8545-1
   Web of Science ®Google Scholar
• Guidara, A., Soumaré, I., & Tchana, F. T. (2013). Banks’ capital buffer, risk and performance in the Canadian banking system: Impact of business cycles and regulatory changes. Journal of Banking & Finance, 37(9), 3373–3387. https://doi.org/10.1016/j.jbankfin.2013.05.012
   Web of Science ®Google Scholar
• Hodrick, R. J., & Prescott, E. C. (1997). Postwar US business cycles: An empirical investigation. Journal of Money, Credit, and Banking, 29(1), 1–16. https://doi.org/10.2307/2953682
   Web of Science ®Google Scholar
• Juelsrud, R. E., & Wold, E. G. (2020). Risk-weighted capital requirements and portfolio rebalancing. Journal of Financial Intermediation, 41, 100806. https://doi.org/10.1016/j.jfi.2018.10.002
   Web of Science ®Google Scholar
• Kanas, A., Vasiliou, D., & Eriotis, N. (2012). Revisiting bank profitability: A semi-parametric approach. Journal of International Financial Markets, Institutions and Money, 22(4), 990–1005. https://doi.org/10.1016/j.intfin.2011.10.003
   Web of Science ®Google Scholar
• Karim, M. Z. A., Chan, S., & Hassan, S. (2010). Bank Efficiency and Non-Performing Loans: Evidence from Malaysia and Singapore. Prague Economic Papers, 19(2), 118–132. https://doi.org/10.18267/j.pep.367
   Web of Science ®Google Scholar
• King, M. R. (2013). The Basel III net stable funding ratio and bank net interest margins. Journal of Banking & Finance, 37(11), 4144–4156. https://doi.org/10.1016/j.jbankfin.2013.07.017
   Web of Science ®Google Scholar
• Kwashie, A. A., Baidoo, S. T., & Ayesu, E. K. (2022). Investigating the impact of credit risk on financial performance of commercial banks in Ghana. Cogent Economics & Finance, 10(1), 2109281. https://doi.org/10.1080/23322039.2022.2109281
   Web of Science ®Google Scholar
• Laeven, L., & Majnoni, G. (2003). Loan loss provisioning and economic slowdowns: Too much, too late? Journal of Financial Intermediation, 12(2), 178–197. https://doi.org/10.1016/S1042-9573(03)00016-0
   Web of Science ®Google Scholar
• Laryea, E., Ntow-Gyamfi, M., & Alu, A. A. (2016). Non-performing loans and bank profitability: Evidence from an emerging market. African Journal of Economic and Management Studies, 7(4), 462–481. https://doi.org/10.1108/AJEMS-07-2015-0088
   Google Scholar
• Leary, M. T. (2009). Bank loan supply, lender choice, and corporate capital structure. The Journal of Finance, 64(3), 1143–1185. https://doi.org/10.1111/j.1540-6261.2009.01461.x
   Web of Science ®Google Scholar
• Lee, J. Y., & Kim, D. (2013). Bank performance and its determinants in Korea. Japan and the World Economy, 27, 83–94. https://doi.org/10.1016/j.japwor.2013.05.001
   Web of Science ®Google Scholar
• Lee, J., & Rosenkranz, P. (2020). Non-performing loans in Asia: Determinants and macrofinancial linkages. International Finance Review, 33–53. https://doi.org/10.1108/S1569-376720200000021003
   Google Scholar
• Mateev, M., & Bachvarov, P. (2021). Regulation, ownership and bank performance in the MENA region: Evidence for Islamic and conventional banks. Emerging Markets Review, 47, 100789. https://doi.org/10.1016/j.ememar.2020.100789
   Web of Science ®Google Scholar
• Mergaerts, F., & Vander Vennet, R. (2016). Business models and bank performance: A long-term perspective. Journal of Financial Stability, 22, 57–75. https://doi.org/10.1016/j.jfs.2015.12.002
   Web of Science ®Google Scholar
• Naumovska, E., & Cvetkoska, V. (2016). Efficiency of the Macedonian banking sector. Yugoslav Journal of Operations Research, 26(3), 317–329. https://doi.org/10.2298/YJOR150228019N
   Google Scholar
• Nguyen, T. L. A. (2018). Diversification and bank efficiency in six ASEAN countries. Global Finance Journal, 37, 57–78. https://doi.org/10.1016/j.gfj.2018.04.004
   Web of Science ®Google Scholar
• Partovi, E., & Matousek, R. (2019). Bank efficiency and non-performing loans: Evidence from Turkey. Research in International Business and Finance, 48, 287–309. https://doi.org/10.1016/j.ribaf.2018.12.011
   Web of Science ®Google Scholar
• Pham, D. K., Ngo, V. M., Nguyen, H. H., & Le, T. L. V. (2021). Financial crisis and diversification strategies: The impact on bank risk and performance. Economics & Business Letters, 10(3), 249–261. https://doi.org/10.17811/ebl.10.3.2021.249-261
   Web of Science ®Google Scholar
• Pham, M. H., & Nguyen, N. M. (2023). Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemic. Cogent Business & Management, 10(1), 2191305. https://doi.org/10.1080/23311975.2023.2191305
   Web of Science ®Google Scholar
• Pham, B. T., Sala, H., & Silva, J. I. (2020). Growth and real business cycles in Vietnam and the Asean-5. Does the trend shock matter? Economic Systems, 44(1), 100730. https://doi.org/10.1016/j.ecosys.2019.100730
   Web of Science ®Google Scholar
• San, O. T., & Heng, T. B. (2013). Factors affecting the profitability of Malaysian commercial banks. African Journal of Business Management, 7(8), 649–660. https://doi.org/10.25115/eea.v39i10.5337
   Google Scholar
• Sari, F. N., & Endri, E. (2019). Determinants of Return on Assets (ROA) on Conventional Banks Listed on Indonesian Stock Exchange (IDX) Period 2013–2017. IOSR Journal of Business and Management (IOSR-JBM), 21(4), 52–62.
   Google Scholar
• Sufian, F. (2012). Determinants of bank profitability in developing economies: Empirical evidence from the South Asian banking sectors. Contemporary South Asia, 20(3), 375–399. https://doi.org/10.1080/09584935.2012.696089
   Google Scholar
• Sufian, F., & Habibullah, M. S. (2009). Bank specific and macroeconomic determinants of bank profitability: Empirical evidence from the China banking sector. Frontiers of Economics in China, 4(2), 274–291. https://doi.org/10.1007/s11459-009-0016-1
   Google Scholar
• Talavera, O., Yin, S., & Zhang, M. (2018). Age diversity, directors’ personal values, and bank performance. International Review of Financial Analysis, 55, 60–79. https://doi.org/10.1016/j.irfa.2017.10.007
   Web of Science ®Google Scholar
• Tran, V. T., Lin, C. T., & Nguyen, H. (2016). Liquidity creation, regulatory capital, and bank profitability. International Review of Financial Analysis, 48, 98–109. https://doi.org/10.1016/j.irfa.2016.09.010
   Web of Science ®Google Scholar
• Tran, O. K. T., Nguyen, D. V., & Duong, K. D. (2022). How market concentration and Liquidity affect non-performing loans: Evidence from Vietnam. Polish Journal of Management Studies, 26(1), 325–337. https://doi.org/10.17512/pjms.2022.26.1.20
   Web of Science ®Google Scholar
• Vinh, N. T. H. (2017). The impact of non-performing loans on bank profitability and lending behavior: Evidence from Vietnam. Journal of Economic Development JED, 24(3), 27–44. https://doi.org/10.24311/JED/2017.24.3.06
   Google Scholar
• Vo, X. V. (2020). The role of bank funding diversity: Evidence from Vietnam. International Review of Finance, 20(2), 529–536. https://doi.org/10.1111/irfi.12215
   Web of Science ®Google Scholar
• Zhang, X., & Daly, K. (2014). The impact of bank-specific and macroeconomic factors on China’s bank performance ok. The Chinese Economy, 47(5–6), 5–28.
   Google Scholar
• Zhang, L., Zhang, S., & Guo, Y. (2019). The effects of equity financing and debt financing on technological innovation: Evidence from developed countries. Baltic Journal of Management, 14(4), 698–715. https://doi.org/10.1108/BJM-01-2019-0011
   Web of Science ®Google Scholar