IDEAS home Printed from https://ideas.repec.org/p/shr/wpaper/08-24.html
   My bibliography  Save this paper

Sensibilité des banques aux chocs macroéconomiques : La diversification apporte-t-elle toujours des gains ? Cas des banques canadiennes

Author

Listed:
  • Mario Fortin

    (GREDI, Département d'économique, Université de Sherbrooke)

  • Didelle Dinamona

    (CREUSET, Université de St-Etienne)

Abstract

This article investigates the sensitivity of Canadian banks to macroeconomic shocks in terms of risk and profitability. We identify the impact of diversification strategy on Canadian banks which are not allowed to enlarge completely their activities. Using a sample of the six largest Canadian banks over the period 1996 to 2006 and panel data methodology, we find that they are sensitive to macroeconomics shocks. Furthermore, our findings suggest that despite the negative impact of non interest income on bank profitability, the six Canadian banks can exploit economies of scale and scope by increasing their size, enabling them to withstand macroeconomic shocks.

Suggested Citation

  • Mario Fortin & Didelle Dinamona, 2008. "Sensibilité des banques aux chocs macroéconomiques : La diversification apporte-t-elle toujours des gains ? Cas des banques canadiennes," Cahiers de recherche 08-24, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:08-24
    as

    Download full text from publisher

    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0824.pdf
    File Function: First version, 2008
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Canadian banks; diversification; macroeconomic shocks; panel data;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:shr:wpaper:08-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-François Rouillard (email available below). General contact details of provider: https://edirc.repec.org/data/deushca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.