How hungry are you?: The risk appetite of domestic banks of four selected ASEAN countries based on their risk-taking behavior and ownership structure

• Main Authors: Belviz, Janine S., Tiongson, Chermela Coleen S.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Banks and banking > Philippines; Risk; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14886
• Institution: De La Salle University

The main objective of this study was to determine the relationship between ownership structure and banking risks of Indonesia, Philippines, Singapore, and Thailand to be able to quantify the risk appetite of domestic type of ownership. This study also aimed to identify the risk-appetite of the banks from Indonesia, Philippines, Singapore, and Thailand, to identify which risk (i.e. liquidity or operational) the countries are more prone to, and to provide information that will help policymakers from these countries understand the banking risks caused by the ownership structure. To achieve those objectives, the researchers utilized the 2015 study of Attia, Lassoued, and Sassi as the base journal and main guide using the 2SLS model on a single equation with instrumental variables. In this study, the researchers found that the control variables of bank characteristics and macro-level factors, together with the ownership percentage of domestic banks do not have significant relationship with the liquidity and operational risk-taking behavior of domestic banks in the four selected ASEAN countries. However, some of the independent variables have significant relationship with other dependent variables such as LLP to total asset ratio, capital adequacy, and asset turnover ratio.