International Evidence on Risk Taking by Banks Around the Global Financial Crisis

Date

2018-01-01

Author

Danışoğlu, Seza
Güner, Zehra Nuray
Ayaydın Hacıömeroğlu, Hande

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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This study models the risks of commercial banks from the United States and developed, emerging, and frontier countries while controlling for bank- and country-specific variables within a panel framework. Bank risk is measured by both the traditional Z-score and a composite bank risk index proposed by the authors. The findings suggest that even though the riskiness of all banks from different country groups increased following the financial crisis, the magnitude of the change is not the same across groups. During the post-crisis period, banks in developed, emerging, and frontier countries experienced a smaller increase in their risk compared to their counterparts in the United States. This article provides support for the claim that banks in emerging and frontier countries have experienced the effects of the financial crisis to a lesser extent compared to those in the United States.

Subject Keywords

Bank risk index, Emerging markets, Financial crisis, Z-score

URI

https://hdl.handle.net/11511/34298

Journal

EMERGING MARKETS FINANCE AND TRADE

DOI

https://doi.org/10.1080/1540496x.2017.1388779

Collections

Department of Business Administration, Article

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Citation Formats

S. Danışoğlu, Z. N. Güner, and H. Ayaydın Hacıömeroğlu, “International Evidence on Risk Taking by Banks Around the Global Financial Crisis,” EMERGING MARKETS FINANCE AND TRADE, pp. 1946–1962, 2018, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/34298.