Impact of trade openness on bank risk-taking behavior: Evidence from a developing country

References

• Aggarwal, R., & Jacques, K. T. (1998). Assessing the impact of prompt corrective action on bank capital and risk. Economic Policy Review, 4.
   Google Scholar
• Agnello, L., & Sousa, R. M. (2011). Can fiscal policy stimulus boost economic recovery? Revue économique, 62(6), 1045–14. https://doi.org/10.3917/reco.626.1045
   Google Scholar
• Agoraki, M.-E. K., Delis, M. D., & Pasiouras, F. (2011). Regulations, competition and bank risk-taking in transition countries. Journal of Financial Stability, 7(1), 38–48. https://doi.org/10.1016/j.jfs.2009.08.002
   Web of Science ®Google Scholar
• Alonso-Borrego, C., & Arellano, M. (1999). Symmetrically normalized instrumental-variable estimation using panel data. Journal of Business & Economic Statistics, 17, 36–49.
   Web of Science ®Google Scholar
• Anginer, D., Demirguc-Kunt, A., Huizinga, H., & Ma, K. (2013). How does corporate governance affect bank capitalization strategies? The World Bank.
   Google Scholar
• Ashraf, B., Arshad, S., & Yan, L. (2017). Trade openness and bank risk-taking behavior: Evidence from emerging economies. Journal of Risk and Financial Management, 10(3), 15. https://doi.org/10.3390/jrfm10030015
   Web of Science ®Google Scholar
• Ashraf, B. N., Zheng, C., & Arshad, S. (2016). Effects of national culture on bank risk-taking behavior. Research in International Business and Finance, 37, 309–326. https://doi.org/10.1016/j.ribaf.2016.01.015
   Web of Science ®Google Scholar
• Baltagi, B. H., Demetriades, P. O., & Law, S. H. (2009). Financial development and openness: Evidence from panel data. Journal of Development Economics, 89(2), 285–296. https://doi.org/10.1016/j.jdeveco.2008.06.006
   Web of Science ®Google Scholar
• Baltagi, B. H., Egger, P., & Pfaffermayr, M. (2013). A generalized spatial panel data model with random effects. Econometric Reviews, 32(5–6), 650–685. https://doi.org/10.1080/07474938.2012.742342
   Web of Science ®Google Scholar
• Barth, J. R., Caprio, G., & Levine, R. (2004). Bank supervision and regulation: What works best. Journal of Financial Intermediation, 13(2), 205–248. https://doi.org/10.1016/j.jfi.2003.06.002
   Web of Science ®Google Scholar
• Berger, A. N., & Udell, G. F. (1995). Relationship lending and lines of credit in small firm finance. The Journal of Business, 68(3), 351–381. https://doi.org/10.1086/296668
   Web of Science ®Google Scholar
• Berger, A. N., & Udell, G. F. (2002). Small business credit availability and relationship lending: The importance of bank organisational structure. The Economic Journal, 112(477), F32–F53. https://doi.org/10.1111/1468-0297.00682
   Web of Science ®Google Scholar
• Berk, J. B. (1995). A critique of size-related anomalies. The Review of Financial Studies, 8(2), 275–286. https://doi.org/10.1093/rfs/8.2.275
   Web of Science ®Google Scholar
• Blundell, R., & Bond, S. (2000). GMM estimation with persistent panel data: An application to production functions. Econometric Reviews, 19(3), 321–340. https://doi.org/10.1080/07474930008800475
   Google Scholar
• Bolt, W., & Tieman, A. F. (2004). Banking competition, risk and regulation. Scandinavian Journal of Economics, 106(4), 783–804. https://doi.org/10.1111/j.0347-0520.2004.00388.x
   Web of Science ®Google Scholar
• Borio, C. E., & Drehmann, M. (2009). Assessing the risk of banking crises–revisited. BIS Quarterly Review, March.
   Google Scholar
• Boyd, J. H., & De Nicolo, G. (2005). The theory of bank risk taking and competition revisited. The Journal of Finance, 60(3), 1329–1343. https://doi.org/10.1111/j.1540-6261.2005.00763.x
   Web of Science ®Google Scholar
• Cai, J., & Thakor, A. V. (2008, November). Liquidity risk, credit risk and interbank competition. Credit Risk and Interbank Competition, 19, 2008.
   Google Scholar
• Chernykh, L., & Cole, R. A. (2011). Does deposit insurance improve financial intermediation? Evidence from the Russian experiment. Journal of Banking & Finance, 35(2), 388–402. https://doi.org/10.1016/j.jbankfin.2010.08.014
   Web of Science ®Google Scholar
• Cornelli, F., Goldreich, D., & Ljungqvist, A. (2006). Investor sentiment and pre‐IPO markets. The Journal of Finance, 61(3), 1187–1216. https://doi.org/10.1111/j.1540-6261.2006.00870.x
   Web of Science ®Google Scholar
• Demirgüç-Kunt, A., & Kane, E. J. (2002). Deposit insurance around the globe: Where does it work? Journal of Economic Perspectives, 16(2), 175–195. https://doi.org/10.1257/0895330027319
   Web of Science ®Google Scholar
• Goetz, M. (2010, May). Bank organization, market structure and risk taking: Theory and evidence from US commercial banks. Federal Reserve Bank of Boston Working Paper.
   Google Scholar
• Gropp, R., & Vesala, J. (2004). Deposit insurance, moral hazard and market monitoring. Review of Finance, 8(4), 571–602. https://doi.org/10.1093/rof/8.4.571
   Google Scholar
• Gupta, A. D., & Moudud-Ul-Huq, S. (2020). Do competition and revenue diversification have significant effect on risk-taking? Empirical evidence from BRICS banks. International Journal of Financial Engineering, 7.
   Web of Science ®Google Scholar
• Haselmann, R., & Wachtel, P. (2007). Risk taking by banks in the transition countries. Comparative Economic Studies, 49(3), 411–429. https://doi.org/10.1057/palgrave.ces.8100214
   Google Scholar
• Jacques, K., & Nigro, P. (1997). Risk-based capital, portfolio risk, and bank capital: A simultaneous equations approach. Journal of Economics and Business, 49(6), 533–547. https://doi.org/10.1016/S0148-6195(97)00038-6
   Google Scholar
• Kennedy, P. (2008). A guide to modern econometrics. Blackwell Publishing.
   Google Scholar
• Köhler, M. (2015). Which banks are more risky? The impact of business models on bank stability. Journal of Financial Stability, 16, 195–212. https://doi.org/10.1016/j.jfs.2014.02.005
   Web of Science ®Google Scholar
• Lalon, R. M. (2015). credit risk management (CRM) practices in commercial banks of Bangladesh:“A study on basic bank Ltd.”. International Journal of Economics, Finance and Management Sciences, 3(2), 78–90. https://doi.org/10.11648/j.ijefm.20150302.12
   Google Scholar
• Luo, Y., Tanna, S., & De Vita, G. (2016). Financial openness, risk and bank efficiency: Cross-country evidence. Journal of Financial Stability, 24, 132–148. https://doi.org/10.1016/j.jfs.2016.05.003
   Web of Science ®Google Scholar
• Matutes, C., & Vives, X. (2000). Imperfect competition, risk taking, and regulation in banking. European Economic Review, 44(1), 1–34. https://doi.org/10.1016/S0014-2921(98)00057-9
   Web of Science ®Google Scholar
• Merton, R. C. (1977). An analytic derivation of the cost of deposit insurance and loan guarantees an application of modern option pricing theory. Journal of Banking & Finance, 1(1), 3–11. https://doi.org/10.1016/0378-4266(77)90015-2
   Google Scholar
• Moudud-Ul-Huq, S. (2018). Banks’ capital buffers, risk, and efficiency in emerging economies: Are they counter-cyclical? Eurasian Economic Review, 1–26.
   Web of Science ®Google Scholar
• Moudud-Ul-Huq, S. (2019a). Can BRICS and ASEAN-5 emerging economies benefit from bank diversification? Journal of Financial Regulation and Compliance, 27(1), 43–69. https://doi.org/10.1108/JFRC-02-2018-0026
   Web of Science ®Google Scholar
• Moudud-Ul-Huq, S. (2019b). the impact of business cycle on banks’ capital buffer, risk and efficiency: A dynamic GMM approach from a developing economy. Global Business Review, 0972150918817382.
   Web of Science ®Google Scholar
• Moudud-Ul-Huq, S. (2020). Does bank competition matter for performance and risk-taking? empirical evidence from BRICS countries. International Journal of Emerging Markets, Ahead-of-prin. https://doi.org/10.1108/IJOEM-03-2019-0197
   Web of Science ®Google Scholar
• Moudud-Ul-Huq, S., Ashraf, B. N., Gupta, A. D., & Zheng, C. (2018a). Does bank diversification heterogeneously affect performance and risk-taking in ASEAN emerging economies? Research in International Business and Finance, 46, 342–362. https://doi.org/10.1016/j.ribaf.2018.04.007
   Web of Science ®Google Scholar
• Moudud-Ul-Huq, S, Halim, M. A, & Biswas, T. (2020). Competition and profitability of banks: empirical evidence from the middle east & north african (mena) countries. Journal Of Business Administration Research, 3(), 2. https://doi.org/10.30564/jbar.v3i2.1807
   Google Scholar
• Moudud-Ul-Huq, S., Zheng, C., & Gupta, A. D. (2018c). Does bank corporate governance matter for bank performance and risk-taking? New insights of an emerging economy. Asian Economic and Financial Review, 8(2), 205–230. https://doi.org/10.18488/journal.aefr.2018.82.205.230
   Google Scholar
• Moudud-Ul-Huq, S., Zheng, C., Gupta, A. D., & Hossain, S. K. A. (2020). Risk and performance in emerging economies: do bank diversification and financial crisis matter? Global Business Review, 1–27.
   Web of Science ®Google Scholar
• Petersen, M. A., & Rajan, R. G. (2002). Does distance still matter? The information revolution in small business lending. The Journal of Finance, 57(6), 2533–2570. https://doi.org/10.1111/1540-6261.00505
   Web of Science ®Google Scholar
• Pigka-Balanika, V. (2013). The impact of trade openness on economic growth. Evidence in Developing Countries”, Erasmus School of Economics, 1–32.
   Google Scholar
• Rahman, M. M., Uddin, K. M. K., & Moudud-Ul-Huq, S. (2015). Factors affecting the risk-taking behavior of commercial banks in Bangladesh. Applied Finance and Accounting, 1(2), 96–106. https://doi.org/10.11114/afa.v1i2.850
   Google Scholar
• Rajan, R. G., & Zingales, L. (2003). The great reversals: The politics of financial development in the twentieth century. Journal of Financial Economics, 69(1), 5–50. https://doi.org/10.1016/S0304-405X(03)00125-9
   Web of Science ®Google Scholar
• Repullo, R. (2004). Capital requirements, market power, and risk-taking in banking. Journal of Financial Intermediation, 13(2), 156–182. https://doi.org/10.1016/j.jfi.2003.08.005
   Web of Science ®Google Scholar
• Roy, A. (2008). Organization structure and risk taking in banking. Risk Management, 10(2), 122–134. https://doi.org/10.1057/palgrave.rm.8250043
   Google Scholar
• Stever, R. (2007). Bank size, credit and the sources of bank market risk.
   Google Scholar
• Yanikkaya, H. (2003). Trade openness and economic growth: A cross-country empirical investigation. Journal of Development Economics, 72(1), 57–89. https://doi.org/10.1016/S0304-3878(03)00068-3
   Web of Science ®Google Scholar
• Zheng, C., Das Gupta, A., & Moudud-Ul-Huq, S. (2017a). Do market competition and development indicators matter for banks’ risk, capital, and efficiency relationship? International Journal of Financial Engineering, 4(2n3), 1750027. https://doi.org/10.1142/S242478631750027X
   Web of Science ®Google Scholar
• Zheng, C., & Moudud-Ul-Huq, S. (2017). Banks’ capital regulation and risk: Does bank vary in size? Empirical evidence from Bangladesh. International Journal of Financial Engineering, 4(2n3), 1750025. https://doi.org/10.1142/S2424786317500256
   Web of Science ®Google Scholar
• Zheng, C., Moudud-Ul-Huq, S., Rahman, M. M., & Ashraf, B. N. (2017b). Does the ownership structure matter for banks’ capital regulation and risk-taking behavior? Empirical evidence from a developing country. Research in International Business and Finance, 42, 404–421. https://doi.org/10.1016/j.ribaf.2017.07.035
   Web of Science ®Google Scholar