Employing a panel data set including 37 joint-stock commercial banks covering the period from 2006 to 2013, this paper investigates the impact of income diversification on bank risk and returns. Our results show that increased income diversification results in higher rates of bank returns. However, when risk is considered, the increased income diversification leads to lower risk-adjusted returns. Empirical evidence also shows that the income diversification is not beneficial to joint-stock commercial banks in Vietnam.
Employing a panel data set including 37 joint-stock commercial banks covering the period from 2006 to 2013, this paper investigates the impact of income diversification on bank risk and returns. Our results show that increased income diversification results in higher rates of bank returns. However, when risk is considered, the increased income diversification leads to lower risk-adjusted returns. Empirical evidence also shows that the income diversification is not beneficial to joint-stock commercial banks in Vietnam.
| APA | Vinh, V. X. (2016). Profitability and risk in relation to income diversification of Vietnamese commercial banking system. (Journal Article). http://digital.lib.ueh.edu.vn/handle/UEH/55249 |
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| MLA | Vo Xuan Vinh. Profitability and risk in relation to income diversification of Vietnamese commercial banking system. 2016. Trường Đại học Kinh tế Tp. Hồ Chí Minh. Journal Article. http://digital.lib.ueh.edu.vn/handle/UEH/55249 |
| Chicago | Vo Xuan Vinh. "Profitability and risk in relation to income diversification of Vietnamese commercial banking system. "(Journal Article, Trường Đại học Kinh tế Tp. Hồ Chí Minh, 2016) |