Title page for etd-0520117-165427


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URN etd-0520117-165427
Author Chia-Ying Hung
Author's Email Address No Public.
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Department Finance
Year 2016
Semester 2
Degree Master
Type of Document
Language zh-TW.Big5 Chinese
Title The Impact of Bank Characteristics on Returns and Risk:An Empirical Study of Taiwan Commercial Banks
Date of Defense 2017-06-03
Page Count 59
Keyword
  • Bank size
  • Capital
  • Deposit funding
  • Noninterest income share
  • Profitability
  • Bank stability
  • Financial crisis
  • Abstract The outbreak of the global financial tsunami in 2008 led to the advent of “The Basel Capital Accord III”. Hoping through the introduction of new norms on capital, financial leverage and liquidity standards to improve bank’s financial structure and funding stability, strengthens the capability of bearing risk. Also, in the face of low interest rates, low market share and low profitability, domestic banking industry actively expand overseas and strongly develop non-traditional banking activities in recent years, hoping to improve banks profitability. Therefore, the study will analyze the four major bank characteristics: size, capital, funding and activity their impact on returns and risk by simultaneous equations model, and to explore whether the change of bank's business strategy and business model is feasible.
    The empirical results show that bank size has a positive impact on profitability and insolvency risk, and has a negative impact on credit risk. It shows that the expansion of bank size helps to improve profitability and reduce credit risk, but the possibility of insolvency increases. The equity ratio has a positive impact on profitability and has a negative impact on insolvency risk and credit risk, indicating that the increase in the capital ratio improves bank's profit performance and reduces risk. The deposit funding ratio has a negative influence on profitability, insolvency risk and credit risk, reflecting using retail deposit as main source of funds can reduce risk, but the profit performance is also poor. As for noninterest income share, it has a negative influence on profitability and credit risk, and has a positive influence on insolvency risk. It indicates that the higher degree of bank income relies on non-traditional banking activities, the lower the credit risk, but may result in a decline in bank profitability and an increase in insolvency likelihood. Therefore, it is suggested that when banks actively expand their scale, they should pay more attention to the importance of risk control. Also, encouraging banks to raise capital levels and pursue long term stable capital structure to implement sound operation. Finally, so as to meet customer needs and enhance the competitiveness and operational efficiency of banks, suggesting banks should take advantage of own specialties and cooperate with different industries, and combine new technology to develop innovative financial services.
    Advisory Committee
  • Lo, Henry Y. - chair
  • Lee, Yi-Hsi - co-chair
  • Wang, Kuan-Ting - co-chair
  • Kuo, Chau-Jung - advisor
  • Files
  • etd-0520117-165427.pdf
  • Indicate in-campus at 5 year and off-campus access at 5 year.
    Date of Submission 2017-06-20

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