Purpose

This study aims to examine the impact of activity restrictions in shaping the risk-taking behaviour of banks through the channel of competition in different economic conditions.

Design/methodology/approach

The authors use a dynamic panel regression method, particularly a two-step system generalised method of moments to address the risk-taking persistence of banks and endogeneity of activity restrictions and competition with banks’ risk-taking using financial freedom and property rights as instrumental variables. Activity restrictions are computed by constructing an index based on the survey results of Barth et al. (2001, 2006, 2008 and 2013a). Competition is measured by the Panzar–Rosse H-statistic and risk-taking behaviour are measured by non-performing loan ratio and lnZ-score. In the investigation process, the authors control bank characteristics – size, efficiency, ownership and loan composition and macroeconomic factors – gross domestic product growth and inflation, and use 2,527 bank-year observations from 180 commercial banks of Association of the Southeast Asian Nations-five countries over the 1990–2014 period.

Findings

This study finds that activity restrictions exacerbate the risk-taking behaviour of the banks leading to changes in the channel of competition because of the “risk-shifting effect” of competition. The finding is robust by considering the financial crisis and alternative specifications.

Research limitations/implications

This study contributes to bank literature and policy formulation regarding the effect of activity restrictions on the risk-taking behaviour of banks, which is an issue of concern amongst bank regulators, policymakers and academics, especially in the aftermath of the 2008–2009 global financial crisis.

Practical implications

Understanding how the competition plays a role in the relationship between activity restrictions and the risk-taking of banks in different economic situations.

Originality/value

This study provides new insight into the bank literature by investigating the moderating role of competition on activity restrictions and the risk-taking behaviour of banks in a different economic environment.

中文翻译：

---

活动限制对银行承担风险的影响：危机期间竞争是否重要？

目的

本研究旨在探讨活动限制对通过不同经济条件下的竞争渠道塑造银行冒险行为的影响。

设计/方法/方法

作者使用动态面板回归方法，特别是两步系统广义矩法，以金融自由和财产权为工具变量来解决银行的冒险行为持久性和活动限制的内生性以及与银行的冒险行为之间的竞争。 。活动限制是根据Barth等人的调查结果构建一个指数来计算的。（2001、2006、2008和2013a）。竞争由Panzar-Rosse H统计量度，冒险行为由不良贷款率和lnZ量度-分数。在调查过程中，作者控制了银行的特征–规模，效率，所有权和贷款构成以及宏观经济因素–国内生产总值的增长和通货膨胀，并使用了来自东南亚国家联盟的180家商业银行的2,527个银行年度的观察结果。五个1990-2014年期间的国家/地区。

发现

这项研究发现，由于竞争的“风险转移效应”，活动限制加剧了银行的冒险行为，导致了竞争渠道的改变。考虑到金融危机和替代规范，这一发现是有力的。

研究局限/意义

这项研究为有关活动限制对银行冒险行为的影响的银行文献和政策制定做出了贡献，这是银行监管者，决策者和学者特别关注的一个问题，尤其是在2008-2009年全球金融危机之后。

实际影响

了解竞争如何在不同经济情况下的活动限制与银行冒险之间的关系中发挥作用。

创意/价值

通过研究竞争在不同经济环境中对活动限制和银行的冒险行为的调节作用，本研究为银行文献提供了新的见解。