TY - JOUR
T1 - Market power, revenue diversification and bank stability: Evidence from selected South Asian countries
AU - Nguyen, Thi Ngoc My
AU - Skully, Michael Thomas
AU - Perera, Gangodawila H Shrimal R
PY - 2012
Y1 - 2012
N2 - We investigate the association between bank market power and revenue diversification and whether revenue diversification interacts with market power impacting on individual bank stability. These issues are explored in the context of four South Asian banking markets (Bangladesh, India, Pakistan and Sri Lanka) during 1998-2008. Our Generalised Methods of Moments (GMM) estimators indicate that South Asian banks with greater market power focus more on traditional interest income generating activities. Such banks, however, become more stable when they diversify across both interest- and non-interest income activities.
AB - We investigate the association between bank market power and revenue diversification and whether revenue diversification interacts with market power impacting on individual bank stability. These issues are explored in the context of four South Asian banking markets (Bangladesh, India, Pakistan and Sri Lanka) during 1998-2008. Our Generalised Methods of Moments (GMM) estimators indicate that South Asian banks with greater market power focus more on traditional interest income generating activities. Such banks, however, become more stable when they diversify across both interest- and non-interest income activities.
U2 - 10.1016/j.intfin.2012.05.008
DO - 10.1016/j.intfin.2012.05.008
M3 - Article
VL - 22
SP - 897
EP - 912
JO - Journal of International Financial Markets, Institutions and Money
JF - Journal of International Financial Markets, Institutions and Money
SN - 1042-4431
IS - 4
ER -