Purpose

The purpose of this paper is to investigate the impact of diversification, corporate governance and capital regulations on bank risk-taking in Asian emerging economies.

Design/methodology/approach

The authors applied the generalized method of moments to analyze a sample of 116 listed banks of ten Asian emerging economies for the years 2010–2018.

Findings

The authors found that diversification, board size, CEO duality and board independence, block holders and capital regulations significantly affect bank risk-taking. In particular, nontraditional income sources such as noninterest income and adoption of diversification strategies minimize bank risk-taking.

Practical implications

It is expected that the outcomes of this study can be used by banks in Asian emerging economies that seek to reduce risk-taking by managing the diversification of their income streams and managing the impacts of capital regulation and implementing sound corporate governance features in monitoring their operations. This study suggests practical risk minimizing strategies for banks. First is the sourcing of nontraditional income and adoption of diversification strategies. Second, maintaining nonexecutive directors on the board would enhance monitoring of business activities. Third, maintaining deposit insurance would reduce bank’s risk. Government provides insurance to depositors to motivate them to deposit their funds into the banks. This, in return, facilitates banks to overcome risk. However, banks need to be cautious of any increase in capital ratio, as channeling funds into risky investments would increase risk.

Originality/value

This study is the first to investigate the impacts of corporate governance, diversification and regulation on bank’s risk-taking in a cross-country setting of ten Asian emerging economies.

中文翻译：

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多元化，公司治理，监管和银行冒险

目的

本文的目的是调查多元化，公司治理和资本法规对亚洲新兴经济体银行风险承担的影响。

设计/方法/方法

作者运用广义矩量法分析了10个亚洲新兴经济体在2010-2018年间的116家上市银行的样本。

发现

作者发现，多元化，董事会规模，首席执行官的双重性和董事会独立性，大股东和资本法规对银行的冒险行为有显着影响。特别是，非传统收入来源（例如非利息收入和采用多元化战略）可最大程度地减少银行冒险行为。

实际影响

期望亚洲新兴经济体的银行可以使用本研究的结果，这些新兴经济体通过管理收入流的多样化，管理资本监管的影响并实施健全的公司治理功能来监控其运营，从而降低风险承担。这项研究提出了切实可行的银行风险最小化策略。首先是非传统收入的来源和采取多元化战略。第二，维持董事会非执行董事将加强对业务活动的监控。第三，维持存款保险可以降低银行的风险。政府为存款人提供保险，以激励他们将资金存入银行。作为回报，这有利于银行克服风险。然而，

创意/价值

这项研究是首次在十个亚洲新兴经济体的跨国机构中研究公司治理，多元化和监管对银行风险承担的影响。