Journal article
Does economic uncertainty affect the soundness of banks? Evidence from emerging Asian economies
Journal of Asian economics, v 77, 101394
Dec 2021
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper examines the impact of economic uncertainty on four dimensions of banking soundness, namely, banks’ loan growth rates, interest rate spreads, capitalization and risk. By using the bank-level panel data of approximately 500 commercial banks in seven emerging Asian economies, we find consistent evidence that increased economic uncertainty decelerates banks’ loan growth, narrows their interest rate spreads and aggravates their risk, but induces banks to increase their capital holdings. Our results are shown to be robust in a series of checks that use alternative indicators of economic uncertainty and econometric methodologies.
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Details
- Title
- Does economic uncertainty affect the soundness of banks? Evidence from emerging Asian economies
- Creators
- Ji Wu - Southwestern University of Finance and EconomicsYao Yao - Southwestern University of Finance and EconomicsMinghua Chen - Southwestern University of Finance and EconomicsBang Nam Jeon - Drexel University
- Publication Details
- Journal of Asian economics, v 77, 101394
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000706963000003
- Scopus ID
- 2-s2.0-85116648189
- Other Identifier
- 991019330801504721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics