Bank Risk, Capitalization, and Operating Efficiency

摘要: A simultaneous equation framework is used to test hypotheses about the interrelationships among bank interest rate and credit risk-taking, capitalization, operating efficiency. positive effect of inefficiency on risk-taking was found supports moral hazard hypothesis that poor performers are more vulnerable than high performance banking organizations. level capital attributable regulatory pressure underperforming institutions. At same time, firms with operate efficiently less well-capitalized U-shaped relationship detected between loan growth, indicating efficiency improves at a decreasing as growth increases. This entrenched managers who pursue objective enhance their own wealth tend inefficiently.