Determinants of credit risk in Hong Kong banks

The purpose of this dissertation is to study the bank-specific and macroeconomic determinants of credit risk in Hong Kong. The fixed effects model approach is used so as to study credit risk determinants in 22 commercial banks from 2012 to 2017. Moreover, 5 bank-specific and 3 macroeconomic variable...

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Main Author: Hung, Ka Ho
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2019
Online Access:https://eprints.nottingham.ac.uk/57471/
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author Hung, Ka Ho
author_facet Hung, Ka Ho
author_sort Hung, Ka Ho
building Nottingham Research Data Repository
collection Online Access
description The purpose of this dissertation is to study the bank-specific and macroeconomic determinants of credit risk in Hong Kong. The fixed effects model approach is used so as to study credit risk determinants in 22 commercial banks from 2012 to 2017. Moreover, 5 bank-specific and 3 macroeconomic variables are used to assess their influence on credit risk. While there are plenty of studies conducted regarding credit risk determinants in different countries, limited studies have examined credit risk determinants in East-Asian countries, especially in Hong Kong. Hence this dissertation aims to investigate whether the past findings of relevant studies are applicable in Hong Kong banks. The results reveal that the credit risk has a significant negative relationship with bank inefficiency, bank size, bank profitability, bank loan to assets ratio, GDP growth and inflation rate. Meanwhile, credit risk is shown to be having a significant positive relationship with interest rate. Unexpectedly, credit risk has an insignificant relationship with bank capitalisation.
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spelling nottingham-574712022-11-30T11:55:53Z https://eprints.nottingham.ac.uk/57471/ Determinants of credit risk in Hong Kong banks Hung, Ka Ho The purpose of this dissertation is to study the bank-specific and macroeconomic determinants of credit risk in Hong Kong. The fixed effects model approach is used so as to study credit risk determinants in 22 commercial banks from 2012 to 2017. Moreover, 5 bank-specific and 3 macroeconomic variables are used to assess their influence on credit risk. While there are plenty of studies conducted regarding credit risk determinants in different countries, limited studies have examined credit risk determinants in East-Asian countries, especially in Hong Kong. Hence this dissertation aims to investigate whether the past findings of relevant studies are applicable in Hong Kong banks. The results reveal that the credit risk has a significant negative relationship with bank inefficiency, bank size, bank profitability, bank loan to assets ratio, GDP growth and inflation rate. Meanwhile, credit risk is shown to be having a significant positive relationship with interest rate. Unexpectedly, credit risk has an insignificant relationship with bank capitalisation. 2019-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/57471/1/14338851%20N14157%20Determinants%20of%20credit%20risk%20in%20Hong%20Kong%20banks.pdf Hung, Ka Ho (2019) Determinants of credit risk in Hong Kong banks. [Dissertation (University of Nottingham only)]
spellingShingle Hung, Ka Ho
Determinants of credit risk in Hong Kong banks
title Determinants of credit risk in Hong Kong banks
title_full Determinants of credit risk in Hong Kong banks
title_fullStr Determinants of credit risk in Hong Kong banks
title_full_unstemmed Determinants of credit risk in Hong Kong banks
title_short Determinants of credit risk in Hong Kong banks
title_sort determinants of credit risk in hong kong banks
url https://eprints.nottingham.ac.uk/57471/