This paper examines the determinants of the emerging market banks’ derivative usage and the impact of derivative usage on bank value, total risk and bank stability. Our empirical evidence first suggests that derivative usage is driven primarily by net interest margin, bank concentration and institutional strength. In addition, although derivative usage appears to reduce emerging market bank value, it does not affect total risk. Moreover, emerging market banks can reduce bank instability using derivatives. Our findings have important implications for investors and policy makers focusing on emerging derivatives markets.

中文翻译：

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衍生价值或风险？决定因素及其对新兴市场银行衍生工具使用的影响

本文研究了新兴市场银行的衍生工具使用的决定因素以及衍生工具使用对银行价值，总风险和银行稳定性的影响。我们的经验证据首先表明，衍生工具的使用主要受净利率，银行集中度和机构实力的驱动。此外，尽管使用衍生工具似乎会降低新兴市场银行的价值，但它不会影响总风险。此外，新兴市场银行可以使用衍生工具减少银行的不稳定性。我们的发现对专注于新兴衍生品市场的投资者和决策者具有重要意义。