Academic Journal
Banking uncertainty and lending: does bank competition matter?
| العنوان: | Banking uncertainty and lending: does bank competition matter? |
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| المؤلفون: | Dang, Van Dan, Nguyen, Hoang Chung |
| المصدر: | Journal of Asia Business Studies ; volume 17, issue 4, page 741-765 ; ISSN 1558-7894 1558-7894 |
| بيانات النشر: | Emerald |
| سنة النشر: | 2022 |
| الوصف: | Purpose This paper aims to investigate the link between uncertainty in banking and bank lending behavior, particularly shedding light on the modifying role of bank competition in the nexus. Design/methodology/approach The study uses a panel of Vietnamese banks over the 2007–2019 period for empirical analysis and the dispersion of shocks to bank-level variables to measure banking uncertainty. To strongly confirm our findings, the authors perform a battery of alternative checks based on different econometric techniques, including fixed effect regressions with Driscoll–Kraay standard errors, the two-step system generalized method of moments estimator and the least squares dummy variable-corrected estimator. Findings Uncertainty induces multifaceted unfavorable impacts on bank lending. Concretely, banks tend to restraint loan growth, suffer more credit risk, and charge higher lending rates during periods of higher uncertainty. Further investigation reveals that lending activities of banks with greater market power are less sensitive to adverse uncertainty shocks; in other words, increased competition in the banking system is associated with more substantial consequences of uncertainty on bank lending. Originality/value To the best of the authors’ knowledge, this study is the first attempt to simultaneously explore the impacts of uncertainty on quantity, quality and prices of bank lending. This paper also aim at putting forth the level of uncertainty particularly related to the banking sector. Importantly, examining the conditionality of the linkage between uncertainty and bank lending with respect to bank competition is entirely novel. |
| نوع الوثيقة: | article in journal/newspaper |
| اللغة: | English |
| DOI: | 10.1108/jabs-09-2021-0360 |
| DOI: | 10.1108/JABS-09-2021-0360/full/xml |
| DOI: | 10.1108/JABS-09-2021-0360/full/html |
| الاتاحة: | http://dx.doi.org/10.1108/jabs-09-2021-0360 https://www.emerald.com/insight/content/doi/10.1108/JABS-09-2021-0360/full/xml https://www.emerald.com/insight/content/doi/10.1108/JABS-09-2021-0360/full/html |
| Rights: | https://www.emerald.com/insight/site-policies |
| رقم الانضمام: | edsbas.D8BA58D0 |
| قاعدة البيانات: | BASE |
| DOI: | 10.1108/jabs-09-2021-0360 |
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