Australian specific bank features and the impact of income diversification on bank performance and risk

    Research output: Contribution to journalArticleResearchpeer-review

    4 Citations (Scopus)

    Abstract

    Since financial market deregulation, Australian banks have significantly diversified from a dependence on simple products such as interest-bearing loans to a broader range of financial products services. Such initiatives have transformed the structure of the Australian banking industry and are destined to receive scrutiny following the announcement of Australia s financial services inquiry. Against the common view that attempts by firms to diversify can be expected to impact negatively on financial performance, we find no strong evidence to suggest that diversification has been unfavourable to the performance of Australian banks. We find rather that Australia s banks have improved their risk-return profiles as an outcome of diversification.
    Original languageEnglish
    Pages (from-to)63 - 87
    Number of pages25
    JournalAustralian Economic Papers
    Volume54
    Issue number2
    DOIs
    Publication statusPublished - 2015

    Cite this

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    title = "Australian specific bank features and the impact of income diversification on bank performance and risk",
    abstract = "Since financial market deregulation, Australian banks have significantly diversified from a dependence on simple products such as interest-bearing loans to a broader range of financial products services. Such initiatives have transformed the structure of the Australian banking industry and are destined to receive scrutiny following the announcement of Australia s financial services inquiry. Against the common view that attempts by firms to diversify can be expected to impact negatively on financial performance, we find no strong evidence to suggest that diversification has been unfavourable to the performance of Australian banks. We find rather that Australia s banks have improved their risk-return profiles as an outcome of diversification.",
    author = "Piyadasa Edirisuriya and Abeyratna Gunasekarage and Dempsey, {Michael Joseph}",
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    Australian specific bank features and the impact of income diversification on bank performance and risk. / Edirisuriya, Piyadasa; Gunasekarage, Abeyratna; Dempsey, Michael Joseph.

    In: Australian Economic Papers, Vol. 54, No. 2, 2015, p. 63 - 87.

    Research output: Contribution to journalArticleResearchpeer-review

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    AU - Edirisuriya, Piyadasa

    AU - Gunasekarage, Abeyratna

    AU - Dempsey, Michael Joseph

    PY - 2015

    Y1 - 2015

    N2 - Since financial market deregulation, Australian banks have significantly diversified from a dependence on simple products such as interest-bearing loans to a broader range of financial products services. Such initiatives have transformed the structure of the Australian banking industry and are destined to receive scrutiny following the announcement of Australia s financial services inquiry. Against the common view that attempts by firms to diversify can be expected to impact negatively on financial performance, we find no strong evidence to suggest that diversification has been unfavourable to the performance of Australian banks. We find rather that Australia s banks have improved their risk-return profiles as an outcome of diversification.

    AB - Since financial market deregulation, Australian banks have significantly diversified from a dependence on simple products such as interest-bearing loans to a broader range of financial products services. Such initiatives have transformed the structure of the Australian banking industry and are destined to receive scrutiny following the announcement of Australia s financial services inquiry. Against the common view that attempts by firms to diversify can be expected to impact negatively on financial performance, we find no strong evidence to suggest that diversification has been unfavourable to the performance of Australian banks. We find rather that Australia s banks have improved their risk-return profiles as an outcome of diversification.

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    DO - 10.1111/1467-8454.12043

    M3 - Article

    VL - 54

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    EP - 87

    JO - Australian Economic Papers

    JF - Australian Economic Papers

    SN - 0004-900X

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