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Risk-taking and Efficiency of Banks for Emerging Eastern Asian Countries

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  • Chang-Sheng Liao

Abstract

To investigate the risk-taking impacts on bank efficiency in emerging Asian countries, we used a stochastic frontier approach technique. Empirical findings indicate more bank inefficiency in China than other countries, implying that management must not understand how to ensure their resources are being effectively utilized. The results show that credit risk plays more of an important role in banks’ efficiency than operating risk and market risk, and this is consistent with the general idea that banks have a better profitability when they are more stable. JEL classification numbers: D24, G21, G34Key words: Risk-taking, Bank Efficiency, Stochastic Frontier Approach

Suggested Citation

  • Chang-Sheng Liao, 2018. "Risk-taking and Efficiency of Banks for Emerging Eastern Asian Countries," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 8(5), pages 1-2.
    • Handle: RePEc:spt:admaec:v:8:y:2018:i:5:f:8_5_2
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    Cited by:

    1. Chang-Sheng Liao, 2019. "Stock Performance, Corporate Governance, and Efficiency of China and Taiwan Banks: Is there a Relationship?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(2), pages 176-190, February.

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    More about this item

    Keywords

    risk-taking; bank efficiency; stochastic frontier approach;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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