References
- Acharya, V. V., Hasan, I., & Saunders, A. (2006). Should banks be diversified? Evidence from individual bank loan portfolios. The Journal of Business, 79(3), 1355–19. https://doi.org/10.1086/500679
- Allen, F., & Gale, D. (1999). Diversity of opinion and financing of new technologies. Journal of Financial Intermediation, 8(1), 68–89. https://doi.org/10.1006/jfin.1999.0261
- Allen, F., Hryckiewicz, A., Kowalewski, O., & Tümer-Alkan, G. (2014). Transmission of financial shocks in loan and deposit markets: Role of interbank borrowing and market monitoring. Journal of Financial Stability, 15, 112–126. https://doi.org/10.1016/j.jfs.2014.09.005
- Arellano, M. (2002). Sargan’s instrumental variables estimation and the generalized method of moments. Journal of Business and Economic Statistics, 20(4), 450–459. https://doi.org/10.1198/073500102288618595
- Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297. https://doi.org/10.2307/2297968
- Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51. https://doi.org/10.1016/0304-4076(94)01642-D
- Athanasoglou, P. P., Brissimis, S. N., & Delis, M. D. (2008). Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of International Financial Markets, Institutions and Money, 18(2), 121–136. https://doi.org/10.1016/j.intfin.2006.07.001
- Baele, L., De Jonghe, O., & Vander Vennet, R. (2007). Does the stock market value bank diversification? Journal of Banking & Finance, 31(7), 1999–2023. https://doi.org/10.1016/j.jbankfin.2006.08.003
- Banerjee, A. V., Besley, T., & Guinnane, T. W. (1994). Thy neighbor’s keeper: The design of a credit cooperative with theory and a test. The Quarterly Journal of Economics, 109(2), 491–515. https://doi.org/10.2307/2118471
- Barajas, A., Steiner, R., & Salazar, N. (2000). The impact of liberalization and foreign investment in Colombia’s financial sector. Journal of Development Economics, 63(1), 157–196. https://doi.org/10.1016/S0304-3878(00)00104-8
- Barth, J. R., Caprio, G., & Levine, R. (2004). Bank regulation and supervision: What works best? Journal of Financial Intermediation, 13(2), 205–248. https://doi.org/10.1016/j.jfi.2003.06.002
- Beccalli, E., Casu, B., & Girardone, C. (2006). Efficiency and stock performance in European banking. Journal of Business Finance & Accounting, 33(1‐2), 245–262. https://doi.org/10.1111/j.1468-5957.2006.01362.x
- Beck, T., Demirgüç-Kunt, A., & Levine, R. (2000). A new database on the Structure and development of the financial sector. The World Bank Economic Review, 14(3), 597–605. https://doi.org/10.1093/wber/14.3.597
- Berger, A. N. (1995). The profit-structure relationship in banking: Tests of market-power and efficient-structure hypotheses. Journal of Money, Credit, and Banking, 27(2), 404–431. https://doi.org/10.2307/2077876
- Berger, A. N., Clarke, G. R., Cull, R., Klapper, L., & Udell, G. F. (2005). Corporate governance and bank performance: A joint analysis of the static, selection, and dynamic effects of domestic, foreign, and state ownership. Journal of Banking & Finance, 29(8–9), 2179–2221. https://doi.org/10.1016/j.jbankfin.2005.03.013
- Berger, A. N., & DeYoung, R. (2001). The effects of geographic expansion on bank efficiency. Journal of Financial Services Research, 19(2–3), 163–184. https://doi.org/10.1023/A:1011159405433
- Berger, A. N., DeYoung, R., Genay, H., & Udell, G. F. (2000). Globalization of financial institutions: Evidence from cross-border banking performance. Brookings-Wharton Papers on Financial Services, 2000(1), 23–120. https://doi.org/10.1353/pfs.2000.0001
- Berger, A. N., Hasan, I., & Zhou, M. (2009). Bank ownership and efficiency in China: What will happen in the world’s largest nation? Journal of Banking & Finance, 33(1), 113–130. https://doi.org/10.1016/j.jbankfin.2007.05.016
- Berger, A. N., Miller, N. H., Petersen, M. A., Rajan, R. G., & Stein, J. C. (2005). Does function follow organizational form? Evidence from the lending practices of large and small banks. Journal of Financial Economics, 76(2), 237–269. https://doi.org/10.1016/j.jfineco.2004.06.003
- Bond, S. R. (2002). Dynamic panel data models: A guide to micro data methods and practice. Portuguese Economic Journal, 1(2), 141–162. https://doi.org/10.1007/s10258-002-0009-9
- Bonin, J. P., Hasan, I., & Wachtel, P. (2005). Bank performance, efficiency and ownership in transition countries. Journal of Banking & Finance, 29(1), 31–53. https://doi.org/10.1016/j.jbankfin.2004.06.015
- Bordeleau, É., & Graham, C. (2010). The impact of liquidity on bank profitability. Ontario: Working Paper 2010-38, Bank of Canada.
- Bossone, B., & Lee, J.-K. (2004). In finance, size matters: The “systemic scale economies” hypothesis. IMF Staff Papers, 51(1), 19–46. https://doi.org/10.2307/30035861
- Burki, A. A., & Niazi, G. (2010). Impact of financial reforms on efficiency of state-owned, private and foreign banks in Pakistan. Applied Economics, 42(24), 3147–3160. https://doi.org/10.1080/00036840802112315
- Calmès, C., & Liu, Y. (2009). Financial structure change and banking income: A Canada–U.S. comparison. Journal of International Financial Markets, Institutions and Money, 19(1), 128–139. https://doi.org/10.1016/j.intfin.2007.09.003
- Cameron, A. C., & Pravin, K. T. (2010). Microeconometrics using Stata, revised edition (2nd revised ed.). Stata Press.
- Chantapong, S. (2005). Comparative study of domestic and foreign bank performance in Thailand: The regression analysis. Economic Change and Restructuring, 38(1), 63–83. https://doi.org/10.1007/s10644-005-4523-5
- Chiorazzo, V., Milani, C., & Salvini, F. (2008). Income diversification and bank performance: Evidence from Italian Banks. Journal of Financial Services Research, 33(3), 181–203. https://doi.org/10.1007/s10693-008-0029-4
- Claessens, S., Demirgüç-Kunt, A., & Huizinga, H. (2001). How does foreign entry affect domestic banking markets? Journal of Banking & Finance, 25(5), 891–911. https://doi.org/10.1016/S0378-4266(00)00102–3
- Claessens, S., & van Horen, N. (2012). Being a foreigner among domestic banks: Asset or liability? Journal of Banking & Finance, 36(5), 1276–1290. https://doi.org/10.1016/j.jbankfin.2011.11.020
- Correa, R. (2008). Cross-border bank acquisitions: Is there a performance effect? Journal of Financial Services Research, 36(2), 169. https://doi.org/10.1007/s10693-008-0043-6
- Crystal, J., Dages, B. G., & Goldberg, L. S. (2001). Does foreign ownership contribute to sounder banks in emerging markets? The Latin American experience. In R. E. Litan, P. Masson, & M. Pomerleano (Eds.), Open doors: Foreign participation in Emerging Financial System (p. 5). Brookings Press.
- Dages, B. G., Goldberg, L. S., & Kinney, D. (2000). Foreign and domestic bank participation in emerging markets: Lessons from Mexico and Argentina. Economic Policy Review, 6(3), 17-36. https://doi.org/10.3386/w7714
- Demirgüç-Kunt, A., & Huizinga, H. (1999). Determinants of commercial bank interest margins and profitability: Some international evidence. The World Bank Economic Review, 13(2), 379–408. https://doi.org/10.1093/wber/13.2.379
- Deng, S. E., & Elyasiani, E. (2008). Geographic diversification, bank holding company value, and risk. Journal of Money, Credit, and Banking, 40(6), 1217–1238. https://doi.org/10.1111/j.1538-4616.2008.00154.x
- Detragiache, E., & Gupta, P. (2006). Foreign banks in emerging market crises: Evidence from Malaysia. Journal of Financial Stability, 2(3), 217–242. https://doi.org/10.1016/j.jfs.2006.06.001
- DeYoung, R., & Nolle, D. E. (1996). Foreign-owned banks in the United States: Earning market share or buying it? Journal of Money, Credit, and Banking, 28(4), 622–636. https://doi.org/10.2307/2078074
- DeYoung, R., & Rice, T. (2004). Noninterest income and financial performance at U.S. Commercial Banks. Financial Review, 39(1), 101–127. https://doi.org/10.1111/j.0732-8516.2004.00069.x
- DeYoung, R., & Roland, K. P. (2001). Product mix and earnings volatility at commercial banks: Evidence from a degree of total leverage model. Journal of Financial Intermediation, 10(1), 54–84. https://doi.org/10.1006/jfin.2000.0305
- DeYoung, R., & Torna, G. (2013). Nontraditional banking activities and bank failures during the financial crisis. Journal of Financial Intermediation, 22(3), 397–421. https://doi.org/10.1016/j.jfi.2013.01.001
- Diamond, D. W. (1984). Financial intermediation and delegated monitoring. The Review of Economic Studies, 51(3), 393–414. https://doi.org/10.2307/2297430
- Dietrich, A., & Wanzenried, G. (2014). The determinants of commercial banking profitability in low-, middle-, and high-income countries. The Quarterly Review of Economics and Finance, 54(3), 337–354. https://doi.org/10.1016/j.qref.2014.03.001
- Edward Chang, C., Hasan, I., & Hunter, W. C. (1998). Efficiency of multinational banks: An empirical investigation. Applied Financial Economics, 8(6), 689–696. https://doi.org/10.1080/096031098332727
- Froot, K. A., & Stein, J. C. (1998). Risk management, capital budgeting, and capital structure policy for financial institutions: An integrated approach. Journal of Financial Economics, 47(1), 55–82. https://doi.org/10.1016/S0304-405X(97)00037-8
- Fu, X. M., Lin, Y. R., & Molyneux, P. (2015). Bank capital and liquidity creation in Asia Pacific. Economic Inquiry, 54(2), 966–993. https://doi.org/10.1111/ecin.12308
- Gallo, J. G., Apilado, V. P., & Kolari, J. W. (1996). Commercial bank mutual fund activities: Implications for bank risk and profitability. Journal of Banking & Finance, 20(10), 1775–1791. https://doi.org/10.1016/S0378-4266(96)00024-6
- Ghenimi, A., Chaibi, H., & Omri, M. A. B. (2017). The effects of liquidity risk and credit risk on bank stability: Evidence from the MENA region. Borsa Istanbul Review, 17(4), 238–248. https://doi.org/10.1016/j.bir.2017.05.002
- Gilchrist, S., & Zakrajšek, E. (2012). Bank lending and credit supply shocks. In F. Allen, M. Aoki, J. Fitoussi, N. Kiyotaki, R. J. Gordon, & J. E. Stiglitz (Eds.), The global macro economy and finance. International Economic Association Series (pp. 154–176). Palgrave Macmillan.
- Goetz, M. R., Laeven, L., & Levine, R. (2016). Does the geographic expansion of banks reduce risk? Journal of Financial Economics, 120(2), 346–362. https://doi.org/10.1016/j.jfineco.2016.01.020
- Grigorian, D. A., & Manole, V. (2002). Determinants of commercial bank performance in transition: An application of data envelopment analysis. IMF Working Papers No. 02/146.
- Gropp, R., Hakenes, H., & Schnabel, I. (2011). Competition, risk-shifting, and public bail-out policies. The Review of Financial Studies, 24(6), 2084–2120. https://doi.org/10.1093/rfs/hhq114
- Hasan, I., & Marton, K. (2003). Development and efficiency of the banking sector in a transitional economy: Hungarian experience. Journal of Banking & Finance, 27(12), 2249–2271. https://doi.org/10.1016/S0378-4266(02)00328-X
- Havrylchyk, O. (2006). Efficiency of the Polish banking industry: Foreign versus domestic banks. Journal of Banking & Finance, 30(7), 1975–1996. https://doi.org/10.1016/j.jbankfin.2005.07.009
- Havrylchyk, O., & Jurzyk, E. (2011). Profitability of foreign banks in Central and Eastern Europe: Does the entry mode matter? 1. Economics of Transition, 19(3), 443–472. https://doi.org/10.1111/j.1468-0351.2010.00406.x
- International Monetary Fund. (2018). Financial soundness indicators. Retrieved from Washington, D.C. International Monetary Fund.
- Jacklin, C. J., & Bhattacharya, S. (1988). Distinguishing Panics and Information-based Bank Runs: Welfare and Policy Implications. Journal of Political Economy, 96(3), 568–592. https://doi.org/10.1086/261552
- Jemric, I., & Vujcic, B. (2002). Efficiency of banks in Croatia: A DEA approach. Comparative Economic Studies, 44(2–3), 169–193. https://doi.org/10.1057/ces.2002.13
- Kim, H., Batten, J. A., & Ryu, D. (2020). Financial crisis, bank diversification, and financial stability: OECD countries. International Review of Economics & Finance, 65, 94–104. https://doi.org/10.1016/j.iref.2019.08.009
- 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
- Kolari, J., Glennon, D., Shin, H., & Caputo, M. (2002). Predicting large US commercial bank failures. Journal of Economics and Business, 54(4), 361–387. https://doi.org/10.1016/S0148-6195(02)00089-9
- Kraft, E., Hofler, R., & Payne, J. (2006). Privatization, foreign bank entry and bank efficiency in Croatia: A Fourier-flexible function stochastic cost frontier analysis. Applied Economics, 38(17), 2075–2088. https://doi.org/10.1080/00036840500427361
- Kwast, M. L. (1989). The impact of underwriting and dealing on bank returns and risks. Journal of Banking & Finance, 13(1), 101–125. https://doi.org/10.1016/0378-4266(89)90022-8
- Laeven, L., & Levine, R. (2007). Is there a diversification discount in financial conglomerates? Journal of Financial Economics, 85(2), 331–367. https://doi.org/10.1016/j.jfineco.2005.06.001
- Laeven, L., & Levine, R. (2009). Bank governance, regulation and risk taking. Journal of Financial Economics, 93(2), 259-275. https://doi.org/259-275.10.1016/j.jfineco.2008.09.003
- Le, T. D. (2017). The interrelationship between net interest margin and non-interest income: Evidence from Vietnam. International Journal of Managerial Finance, 13(5), 521–540. https://doi.org/10.1108/IJMF-06-2017-0110
- Le, T. D. (2018). Bank risk, capitalisation and technical efficiency in the Vietnamese banking system. Australasian Accounting Business & Finance Journal, 12(3), 42–61. https://doi.org/http://dx.doi.10.14453/aabfj.v12i3.4
- Le, T. D., & Ngo, T. (2020). The determinants of bank profitability: A cross-country analysis. Central Bank Review, 20(2), 65–73. https://doi.org/10.1016/j.cbrev.2020.04.001
- Le, T. D., Tran, S. H., & Nguyen, L. T. (2019). The impact of multimarket contacts on bank stability in Vietnam. Pacific Accounting Review, 31(3), 336–357. https://doi.org/10.1108/PAR-04-2018-0033
- Lee, -C.-C., Yang, S.-J., & Chang, C.-H. (2014). Non-interest income, profitability, and risk in banking industry: A cross-country analysis. The North American Journal of Economics and Finance, 27, 48–67. https://doi.org/10.1016/j.najef.2013.11.002
- Lepetit, L., Nys, E., Rous, P., & Tarazi, A. (2008). Bank income structure and risk: An empirical analysis of European banks. Journal of Banking & Finance, 32(8), 1452–1467. https://doi.org/10.1016/j.jbankfin.2007.12.002
- Li, L., & Zhang, Y. (2013). Are there diversification benefits of increasing noninterest income in the Chinese banking industry? Journal of Empirical Finance, 24, 151–165. https://doi.org/10.1016/j.jempfin.2013.10.004
- Liadaki, A., & Gaganis, C. (2010). Efficiency and stock performance of EU banks: Is there a relationship? Omega, 38(5), 254–259. https://doi.org/10.1016/j.omega.2008.09.003
- Majnoni, G., Shankar, R., & Varhegyi, E. (2003). The dynamics of foreign bank ownership: Evidence from Hungary. Policy Research Working Papers, The World Bank.
- Mercieca, S., Schaeck, K., & Wolfe, S. (2007). Small European banks: Benefits from diversification? Journal of Banking & Finance, 31(7), 1975–1998. https://doi.org/10.1016/j.jbankfin.2007.01.004
- Meslier, C., Tacneng, R., & Tarazi, A. (2014). Is bank income diversification beneficial? Evidence from an emerging economy. Journal of International Financial Markets, Institutions and Money, 31, 97–126. https://doi.org/10.1016/j.intfin.2014.03.007
- Micco, A., Panizza, U., & Yañez, M. (2007). Bank ownership and performance. Does politics matter? Journal of Banking & Finance, 31(1), 219–241. https://doi.org/10.1016/j.jbankfin.2006.02.007
- Miller, S. R., & Parkhe, A. (2002). Is there a liability of foreignness in global banking? An empirical test of banks’ X-efficiency. Strategic Management Journal, 23(1), 55–75. https://doi.org/10.1002/smj.212
- Miller, S. R., & Richards, M. (2002). Liability of foreignness and membership in a regional economic group: Analysis of the European Union. Journal of International Management, 8(3), 323-337. https://doi.org/323-337.10.1016/S1075-4253(02)00071-6
- Ngo, T., & Le, T. (2019). Capital market development and bank efficiency: A cross-country analysis. International Journal of Managerial Finance, 15(4), 478-491. https://doi.org/478-491.10.1108/IJMF-02-2018-0048
- Nguyen, J. (2012). The relationship between net interest margin and noninterest income using a system estimation approach. Journal of Banking & Finance, 36(9), 2429–2437. https://doi.org/10.1016/j.jbankfin.2012.04.017
- Nikiel, E. M., & Opiela, T. P. (2002). Customer type and bank efficiency in Poland: Implications for emerging market banking. Contemporary Economic Policy, 20(3), 255–271. https://doi.org/10.1093/cep/20.3.255
- Pennathur, A. K., Subrahmanyam, V., & Vishwasrao, S. (2012). Income diversification and risk: Does ownership matter? An empirical examination of Indian banks. Journal of Banking & Finance, 36(8), 2203–2215. https://doi.org/10.1016/j.jbankfin.2012.03.021
- Pervan, M., Pelivan, I., & Arnerić, J. (2015). Profit persistence and determinants of bank profitability in Croatia. Economic Research-Ekonomska Istraživanja, 28(1), 284–298. https://doi.org/10.1080/1331677X.2015.1041778
- Rossi, S. P., Schwaiger, M. S., & Winkler, G. (2009). How loan portfolio diversification affects risk, efficiency and capitalization: A managerial behavior model for Austrian banks. Journal of Banking & Finance, 33(12), 2218–2226. https://doi.org/10.1016/j.jbankfin.2009.05.022
- Sanya, S., & Wolfe, S. (2011). Can banks in emerging economies benefit from revenue diversification? Journal of Financial Services Research, 40(1), 79–101. https://doi.org/10.1007/s10693-010-0098-z
- Schmid, M. M., & Walter, I. (2009). Do financial conglomerates create or destroy economic value? Journal of Financial Intermediation, 18(2), 193–216. https://doi.org/10.1016/j.jfi.2008.07.002
- Sensarma, R. (2006). Are foreign banks always the best? Comparison of state-owned, private and foreign banks in India. Economic Modelling, 23(4), 717–735. https://doi.org/10.1016/j.econmod.2006.04.002
- Sharma, P., Gounder, N., & Xiang, D. (2013). Foreign banks, profits, market power and efficiency in PICs: Some evidence from Fiji. Applied Financial Economics, 23(22), 1733–1744. https://doi.org/10.1080/09603107.2013.848026
- Stiroh, K. J. (2004). Diversification in banking: Is noninterest income the answer? Journal of Money, Credit, and Banking, 36(5), 853–882. https://doi.org/10.1353/mcb.2004.0076
- Stiroh, K. J., & Rumble, A. (2006). The dark side of diversification: The case of US financial holding companies. Journal of Banking & Finance, 30(8), 2131-2161. https://doi.org/2131-2161.http://dx.doi.10.1016/j.jbankfin.2005.04.030
- Sturm, J.-E., & Williams, B. (2004). Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience. Journal of Banking & Finance, 28(7), 1775–1799. https://doi.org/10.1016/j.jbankfin.2003.06.005
- Sufian, F. (2009). Determinants of bank efficiency during unstable macroeconomic environment: Empirical evidence from Malaysia. Research in International Business and Finance, 23(1), 54–77. https://doi.org/10.1016/j.ribaf.2008.07.002
- Tacneng, R. (2015). The impact of minority foreign ownership and controlling shareholder on bank risk and performance: Evidence from an emerging economy. Managerial Finance, 41(5), 526–546. https://doi.org/10.1108/MF-06-2013-0137
- Van Oordt, M. R. (2014). Securitization and the dark side of diversification. Journal of Financial Intermediation, 23(2), 214–231. https://doi.org/10.1016/j.jfi.2013.05.001
- Vander Vennet, R. (2003). Cross-border mergers in European banking and bank efficiency. In H. Herrmann & R. Lipsey (Eds.), Foreign direct investment in the real and financial sector of industrial countries (pp. 295–321). Springer.
- Williams, B. (2016). The impact of non-interest income on bank risk in Australia. Journal of Banking & Finance, 73, 16–37. https://doi.org/10.1016/j.jbankfin.2016.07.019
- Williams, B., & Prather, L. (2010). Bank risk and return: The impact of bank non-interest income. International Journal of Managerial Finance, 6(3), 220–244. https://doi.org/10.1108/17439131011056233
- World Bank. (2017). World Development Indicators (WDI).
- Yildirim, H. S., & Philippatos, G. C. (2007). Efficiency of banks: Recent evidence from the transition economies of Europe, 1993–2000. European Journal of Finance, 13(2), 123–143. https://doi.org/10.1080/13518470600763687
- Zhou, K. (2014). The effect of income diversification on bank risk: Evidence from China. Emerging Markets Finance and Trade, 50, 201-213. https://doi.org/201-213.10.2753/REE1540-496X5003S312