Profitability and bank risk-taking in CEMAC
DOI:
https://doi.org/10.59051/joaf.v12i1.339Keywords:
Economic profitability, financial profitability, bank risk-takingAbstract
Results: It appears that economic profitability, as well as liquidity and gross domestic product, significantly reduces the bank risk-taking in the CEMAC while inflation and high equity encourage it.
Originality/Relevance: To expand the empirical literature on the effects of profitability on the taking of banks in the CEMAC. Studies of this kind within the sub-region being quite rare
Theoretical/methodological contributions: Mobilize different theoretical concepts in order to provide a corpus of the effects of profitability on banks' risk-taking.
Social/management contributions: This study provides private and public decision-makers with a toolbox to deal with banks’risk-taking, the consequences of which can be harmful for society as a whole.
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References
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Aglietta, M. (1993), «Comportement Bancaire et Risque de Système», Revue d’Economie Financière, 27, pp. 439-463.
Agoraki, M-E., Delis, M. & Pasiouras, F. (2011), « Regulations, Competition and Bank Risk-Taking in Transition Countries », Journal of Financial Stability, 7, pp. 38–48.
Altunbas, Y., Gambacorta, L. & Marques-Ibáñez, D. (2014), « Does Monetary Policy Affect Bank Risk Taking? », International Journal of Central Banking, 10(1), pp. 95-136.
Avom, D. & Eyeffa Ekomo, S. (2007), « Quinze Ans de Restructuration Bancaire dans la CEMAC : qu’Avons-nous Appris ? », Revue Economique Financière, 89, pp. 183-205.
Bonfim, D. & Soares, C. (2018), « The Risk-Taking Channel of Monetary Policy-Exploring all Avenues », Journal of Money Credit and Banking, 50(7), pp. 1507-1541.
Bourguignon, F. (2004), « Le Triangle Pauvreté – Croissance - Inégalités », Afrique contemporaine, 211, pp. 29-56.
Borio, C. & Zhu, H. (2012), « Capital Regulation, Risk-Taking and Monetary Policy: A Missed Link in the Transmission Mechanism? », Journal of Financial Stability, 8(5), pp. 236-251.
BEAC (2017), Rapport annuel sur l’exercice de l’année 2017
COBAC (2017), Rapport annuel sur l’exercice de l’année 2017
Daoud, Y. & Kammoun, A. (2017), « Les Déterminants de la Performance des Banques Islamiques », International Journal of Business & Economic Strategy, 5(2), pp. 22-26.
Demirgüç-Kunt, A. & Levine, R. (2008), « Finance et Opportunité Economique », Revue d’Economie du Développement, 16(4), pp. 5-29.
Ekomane, J. &Yamb, b. (2016), « The Measurement of Credit Channel in the CEMAC », Journal of Economics and Political Economy, 3(4), pp. 744-766.
Gonzalez, F. (2005), « Bank regulation and risk taking incentives: An international comparison of bank risk », Journal of Banking and Finance, 29, pp. 1153-1184.
Hausman, J. (1978), « Specification Tests in Econometrics », Econometrica, 46(6), pp. 1251-1271.
Ioannidou, V., Ongena, S. & Peydró, J. (2014), « Monetary Policy, Risk-Taking and Pricing: Evidence from a Quasi-Natural Experiment », Review of Finance, 19(1), pp. 95-144.
Jiménez, G., Lopez, JA. & Saurina, J. (2013), « How Does Competition Affect Bank Risk-Taking? », Journal of Financial Stability, 9(2), pp. 185-195.
Jiménez, G., Ongena, S., Peydró, J. & Saurina, J. (2014), « Hazardous Times for Monetary Policy: What Do Twenty-Three Million Bank Loans Say About the Effects of Monetary Policy on Credit Risk-Taking? », Econometrica, 82(2), pp. 463-505.
Kimani, G. & Koori, J. (2018), « Monetary Policy and Financial Performance Bank in Kenya», International Journal of Management and Commerce Innovations, 6(1), pp. 1893-1903.
Lopez, M., Tenjo, F. & Zárate, H. (2011), « The Risk-Taking Channel and Monetary Transmission Mechanism in Colombia », Ensayos sobre política económica, 29(64), pp. 2012-287.
Maraghni, H. (2017), « Bank Regulation, Capital Ratio Behaviour, and Risk Taking in a Simultanious Approach », International Journal of Financial Research, 8(1), pp. 43-64.
Martynova, N., Ratnovski, L. & Vlahu, R. (2019), « Bank Profitability, Leverage Constraints, and Risk-Taking », Journal of Financial Intermediation, pp. 59.
Neuenkirch, M. & Nöckel, M. (2018), « The Risk‐Taking Channel of Monetary Policy Transmission in the Euro Area », Journal of Banking & Finance, 93, pp. 71-91.
Paligorova, T. & Santos, J. (2017), « Monetary Policy and Bank Risk-Taking: Evidence from the Corporate Loan Market », Journal of Financial Intermediation, 30(C), pp. 35- 49.
Rajan, R. (2005), « Has Financial Development Made the World Riskier? », Proceedings –
Economic Policy Symposium – Jackson Hole, aug, pp. 313-369.
Stiglitz, J. & Weiss, A. (1981), « The Credit Rationing in Market with Imperfect Information », The American Economic Review, 71(3), pp. 393-410.
Aglietta, M. (1993), «Comportement Bancaire et Risque de Système», Revue d’Economie Financière, 27, pp. 439-463.
Agoraki, M-E., Delis, M. & Pasiouras, F. (2011), « Regulations, Competition and Bank Risk-Taking in Transition Countries », Journal of Financial Stability, 7, pp. 38–48.
Altunbas, Y., Gambacorta, L. & Marques-Ibáñez, D. (2014), « Does Monetary Policy Affect Bank Risk Taking? », International Journal of Central Banking, 10(1), pp. 95-136.
Avom, D. & Eyeffa Ekomo, S. (2007), « Quinze Ans de Restructuration Bancaire dans la CEMAC : qu’Avons-nous Appris ? », Revue Economique Financière, 89, pp. 183-205.
Bonfim, D. & Soares, C. (2018), « The Risk-Taking Channel of Monetary Policy-Exploring all Avenues », Journal of Money Credit and Banking, 50(7), pp. 1507-1541.
Bourguignon, F. (2004), « Le Triangle Pauvreté – Croissance - Inégalités », Afrique contemporaine, 211, pp. 29-56.
Borio, C. & Zhu, H. (2012), « Capital Regulation, Risk-Taking and Monetary Policy: A Missed Link in the Transmission Mechanism? », Journal of Financial Stability, 8(5), pp. 236-251.
BEAC (2017), Rapport annuel sur l’exercice de l’année 2017
COBAC (2017), Rapport annuel sur l’exercice de l’année 2017
Daoud, Y. & Kammoun, A. (2017), « Les Déterminants de la Performance des Banques Islamiques », International Journal of Business & Economic Strategy, 5(2), pp. 22-26.
Demirgüç-Kunt, A. & Levine, R. (2008), « Finance et Opportunité Economique », Revue d’Economie du Développement, 16(4), pp. 5-29.
Ekomane, J. &Yamb, b. (2016), « The Measurement of Credit Channel in the CEMAC », Journal of Economics and Political Economy, 3(4), pp. 744-766.
Gonzalez, F. (2005), « Bank regulation and risk taking incentives: An international comparison of bank risk », Journal of Banking and Finance, 29, pp. 1153-1184.
Hausman, J. (1978), « Specification Tests in Econometrics », Econometrica, 46(6), pp. 1251-1271.
Ioannidou, V., Ongena, S. & Peydró, J. (2014), « Monetary Policy, Risk-Taking and Pricing: Evidence from a Quasi-Natural Experiment », Review of Finance, 19(1), pp. 95-144.
Jiménez, G., Lopez, JA. & Saurina, J. (2013), « How Does Competition Affect Bank Risk-Taking? », Journal of Financial Stability, 9(2), pp. 185-195.
Jiménez, G., Ongena, S., Peydró, J. & Saurina, J. (2014), « Hazardous Times for Monetary Policy: What Do Twenty-Three Million Bank Loans Say About the Effects of Monetary Policy on Credit Risk-Taking? », Econometrica, 82(2), pp. 463-505.
Kimani, G. & Koori, J. (2018), « Monetary Policy and Financial Performance Bank in Kenya», International Journal of Management and Commerce Innovations, 6(1), pp. 1893-1903.
Lopez, M., Tenjo, F. & Zárate, H. (2011), « The Risk-Taking Channel and Monetary Transmission Mechanism in Colombia », Ensayos sobre política económica, 29(64), pp. 2012-287.
Maraghni, H. (2017), « Bank Regulation, Capital Ratio Behaviour, and Risk Taking in a Simultanious Approach », International Journal of Financial Research, 8(1), pp. 43-64.
Martynova, N., Ratnovski, L. & Vlahu, R. (2019), « Bank Profitability, Leverage Constraints, and Risk-Taking », Journal of Financial Intermediation, pp. 59.
Neuenkirch, M. & Nöckel, M. (2018), « The Risk‐Taking Channel of Monetary Policy Transmission in the Euro Area », Journal of Banking & Finance, 93, pp. 71-91.
Paligorova, T. & Santos, J. (2017), « Monetary Policy and Bank Risk-Taking: Evidence from the Corporate Loan Market », Journal of Financial Intermediation, 30(C), pp. 35- 49.
Rajan, R. (2005), « Has Financial Development Made the World Riskier? », Proceedings –
Economic Policy Symposium – Jackson Hole, aug, pp. 313-369.
Stiglitz, J. & Weiss, A. (1981), « The Credit Rationing in Market with Imperfect Information », The American Economic Review, 71(3), pp. 393-410.
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Published
2021-06-23
How to Cite
NGONO, J. F. L., & KAMGUIA PONE, D. S. (2021). Profitability and bank risk-taking in CEMAC. Journal of Academic Finance, 12(1), 2–11. https://doi.org/10.59051/joaf.v12i1.339
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