The Long-term Role of Non-traditional Banking in Profitability and risk profiles: Evidence from a panel of U.S. banking institutions

The goal of this empirical study is to identify empirically and on a panel basis how non-traditional bank activities affect directly the profitability and risk profiles of the financial institutions involved in such activities. Through a dataset that covers 1,725 U.S. financial institutions involved...

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Main Author: Apergis, Nicholas
Format: Journal Article
Published: Pergamon 2014
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/30640
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author Apergis, Nicholas
author_facet Apergis, Nicholas
author_sort Apergis, Nicholas
building Curtin Institutional Repository
collection Online Access
description The goal of this empirical study is to identify empirically and on a panel basis how non-traditional bank activities affect directly the profitability and risk profiles of the financial institutions involved in such activities. Through a dataset that covers 1,725 U.S. financial institutions involved in non-traditional bank activities spanning the period 2000-2013 and the methodology of panel cointegration, the empirical findings document that non-traditional bank activities exert a positive effect on both the profitability and the insolvency risk. The results could be important for regulators given they could serve as a pre-warning signal that sends a clear message to regulators about the potential systemic risk that exists within the financial markets.
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spelling curtin-20.500.11937-306402019-02-19T04:28:02Z The Long-term Role of Non-traditional Banking in Profitability and risk profiles: Evidence from a panel of U.S. banking institutions Apergis, Nicholas panel data insolvency risk U.S non-traditional bank activities banks profitability The goal of this empirical study is to identify empirically and on a panel basis how non-traditional bank activities affect directly the profitability and risk profiles of the financial institutions involved in such activities. Through a dataset that covers 1,725 U.S. financial institutions involved in non-traditional bank activities spanning the period 2000-2013 and the methodology of panel cointegration, the empirical findings document that non-traditional bank activities exert a positive effect on both the profitability and the insolvency risk. The results could be important for regulators given they could serve as a pre-warning signal that sends a clear message to regulators about the potential systemic risk that exists within the financial markets. 2014 Journal Article http://hdl.handle.net/20.500.11937/30640 10.1016/j.jimonfin.2014.03.003 Pergamon fulltext
spellingShingle panel data
insolvency risk
U.S
non-traditional bank activities
banks
profitability
Apergis, Nicholas
The Long-term Role of Non-traditional Banking in Profitability and risk profiles: Evidence from a panel of U.S. banking institutions
title The Long-term Role of Non-traditional Banking in Profitability and risk profiles: Evidence from a panel of U.S. banking institutions
title_full The Long-term Role of Non-traditional Banking in Profitability and risk profiles: Evidence from a panel of U.S. banking institutions
title_fullStr The Long-term Role of Non-traditional Banking in Profitability and risk profiles: Evidence from a panel of U.S. banking institutions
title_full_unstemmed The Long-term Role of Non-traditional Banking in Profitability and risk profiles: Evidence from a panel of U.S. banking institutions
title_short The Long-term Role of Non-traditional Banking in Profitability and risk profiles: Evidence from a panel of U.S. banking institutions
title_sort long-term role of non-traditional banking in profitability and risk profiles: evidence from a panel of u.s. banking institutions
topic panel data
insolvency risk
U.S
non-traditional bank activities
banks
profitability
url http://hdl.handle.net/20.500.11937/30640