Size and risk in banking: Case of 9 publicly listed banks in the Philippines

• Main Authors: Bustos, Jon Martin V., Cheng, Russell Aaron Y., Durano, Joseph Ace D., Serafica, Lorenzo Antonio F.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Banks and banking > Philippines; Risk management > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6319
• Institution: De La Salle University

Do bigger banks take on more risks? Literature that delves on the relationship between bank size and risk remains to be inconclusive. Using financial statement data of 9 publicly listed banks in the Philippine Stock Exchange (PSE), the researchers investigated whether bigger banks in the Philippines take on more risk compared to smaller banks. Using a risk index that captures profitability, volatility, and leverage, the researchers find strong evidence that larger banks in the Philippines take on less risk compared to their smaller counterparts.