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Bank Charter Value, Systemic Risk and Credit Reporting Systems: Evidence from the Asia-Pacific Region

Author

Listed:
  • Wahyoe Soedarmono

    (Universitas Siswa Bangsa Internasional, Faculty of Business / Sampoerna School of Business)

  • Romora Edward Sitorus

    () (Universitas Siswa Bangsa Internasional, Faculty of Business / Sampoerna School of Business)

  • Amine Tarazi

    () (LAPE - Laboratoire d'Analyse et de Prospective Economique - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges)

Abstract

From a sample of publicly-traded banks in the Asia-Pacific region over the 1998-2012 period, we document that banks with higher charter value are able to insulate themselves from systemic risk by acquiring more capital. Nevertheless, we find that the self-disciplining role of bank charter value is more pronounced for countries with lower depth of credit information sharing. Our results also show that in countries with lower quality of private credit bureaus, higher charter value enhances capitalization, and alleviates systemic risk in banking. Overall, these findings suggest that higher bank charter value might be detrimental to systemic stability for countries where the credit reporting system is of better quality.

Suggested Citation

  • Wahyoe Soedarmono & Romora Edward Sitorus & Amine Tarazi, 2016. "Bank Charter Value, Systemic Risk and Credit Reporting Systems: Evidence from the Asia-Pacific Region," Working Papers hal-01284976, HAL.
  • Handle: RePEc:hal:wpaper:hal-01284976
    DOI: 10.2139/ssrn.2628003
    Note: View the original document on HAL open archive server: https://hal-unilim.archives-ouvertes.fr/hal-01284976
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    File URL: https://hal-unilim.archives-ouvertes.fr/hal-01284976/document
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    References listed on IDEAS

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    Cited by:

    1. Yassine Bakkar & Clovis Rugemintwari & Amine Tarazi, 2017. "Charter value and bank stability before and after the global financial crisis of 2007-2008 Charter value and bank stability before and after the global financial crisis of 2007-2008," Working Papers hal-01337601, HAL.

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    Keywords

    Asian banks ; credit information sharing; systemic risk; Bank charter value;

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