淡江大學機構典藏:Item 987654321/61958
English  |  正體中文  |  简体中文  |  Items with full text/Total items : 62797/95867 (66%)
Visitors : 3728789      Online Users : 562
RC Version 7.0 © Powered By DSPACE, MIT. Enhanced by NTU Library & TKU Library IR team.
Scope Tips:
  • please add "double quotation mark" for query phrases to get precise results
  • please goto advance search for comprehansive author search
  • Adv. Search
    HomeLoginUploadHelpAboutAdminister Goto mobile version
    Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/61958


    Title: Optimal bank interest margin and default risk in equity returns under the return to domestic retail with structural breaks
    Authors: Tsai, Jeng-Yan;Lin, Jyh-Horng
    Contributors: 淡江大學國際企業學系
    Keywords: bank interest margin;structural break;retail banking;political pressure
    Date: 2011-10-13
    Issue Date: 2011-10-17 16:12:32 (UTC+8)
    Publisher: Abingdon: Routledge
    Abstract: A retrenchment in crossborder credit is under way, the product of both market forces and political pressure on international banks to lend at home (Economist, 2009). In addition, banks, particularly the largest, have also dramatically expanded their retail banking operations over the past few years (Hirtle and Stiroh, 2007). Our goal, in this article, is to study the effects of default risk on equity returns through bank interest margin management under a renewed focus on domestic retail banking, a trend often attributed to the stability of banking activities. Specifically, this article explores the determinants of optimal bank interest margins based on an option-based firm-theoretical model with multiple sources of structural breaks due to political pressure. The model demonstrates how capital regulation and political pressure on foreign lending return and risk conditions jointly determine the optimal bank interest margin decision. We show that a more stringent capital requirement is linked with lower equity return, but higher default risk of the bank in the return to domestic retail banking. An increased focus on the political pressure on foreign lending return is linked with higher equity return and default risk of the bank. It is also showed that an increased focus on the political pressure on foreign lending risk decreases the bank's equity return and default risk. We conclude that the return to domestic retail banking may be a relatively stable activity when the political pressure decision impacts only the expected risk of the bank's foreign lending and not the return.
    Relation: Applied Economics Letters 45(6), pp.753-764
    DOI: 10.1080/00036846.2011.610755
    Appears in Collections:[Graduate Institute & Department of International Business] Journal Article

    Files in This Item:

    File Description SizeFormat
    index.html0KbHTML893View/Open
    Optimal bank interest margin and default risk in equity returns under the return to domestic retail with structural breaks.pdf240KbAdobe PDF2View/Open

    All items in 機構典藏 are protected by copyright, with all rights reserved.


    DSpace Software Copyright © 2002-2004  MIT &  Hewlett-Packard  /   Enhanced by   NTU Library & TKU Library IR teams. Copyright ©   - Feedback