Bank Diversification and Performance
The Role of Financial Stability
- 10.2991/aebmr.k.210601.007How to use a DOI?
- Income Diversification, Asset Diversification, Financial Stability
The purpose of the study tries to examine whether commercial banks can adopt the strategy of bank diversification to improve the operating performance under the condition of financial stability. By using 19 commercial banks in Macau SAR, the study employing ROA to measure bank performance and income diversification and asset diversification to measure bank diversification. Furthermore, the study employs capital adequacy ratio, non-performing loan ratio, liquidity ratio and financial stability index to measure financial stability to measure financial stability as moderators in the estimation regression. The results of empirical study indicate that income diversification has a significant and positive effect on bank performance, while asset diversification has no significant and positive effect on bank performance. Furthermore, among the moderators of financial stability, liquidity ratio and financial stability index have facilitating effect on the relationship between income diversification and bank performance.
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Shun-Ho Chu AU - Shunping Li AU - Xueying Xia AU - Xiaoyu Liu AU - Jiaxia Li AU - Shujun Zhang PY - 2021 DA - 2021/06/02 TI - Bank Diversification and Performance BT - Proceedings of the 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021) PB - Atlantis Press SP - 38 EP - 43 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.210601.007 DO - 10.2991/aebmr.k.210601.007 ID - Chu2021 ER -