Bank activity and funding strategies : the impact on risk and returns / Asli Demirguc-Kunt, Harry Huizinga

By: Contributor(s): Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: Policy research working paper ; 4837Publisher: [Washington, D.C] : World Bank, 2009Description: Online-RessourceSubject(s): Additional physical formats: Demirgüç-Kunt, Aslı: Bank activity and funding strategies LOC classification:
  • HG3881.5.W57
DOI: DOI: 10.1596/1813-9450-4837Online resources: Additional physical formats: Also available in print.Summary: "This paper examines the implications of bank activity and short-term funding strategies for bank risk and returns using an international sample of 1,334 banks in 101 countries leading up to the 2007 financial crisis. Expansion into non-interest income generating activities such as trading increases the rate of return on assets, and it may offer some risk diversification benefits at very low levels. Non-deposit, wholesale funding, by contrast, lowers the rate of return on assets, although it can offer some risk reduction at commonly observed low levels of non-deposit funding. A sizeable proportion of banks, however, attract most of their short-term funding in the form of non-deposits at a cost of enhanced bank fragility. Overall, banking strategies that rely prominently on generating non-interest income or attracting non-deposit funding are very risky, which is consistent with the demise of the U.S. investment banking sector. "--World Bank web sitePPN: PPN: 834962179Package identifier: Produktsigel: ZDB-1-WBA | ZDB-110-WBL
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