Browse > Article
http://dx.doi.org/10.5762/KAIS.2015.16.8.5267

The Bank Loan of Construction·Real Estate Industry and Bank Risk  

Lee, Sang-Wook (Department of Business Administration, Seoul National University of Science and Technology)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.16, no.8, 2015 , pp. 5267-5272 More about this Journal
Abstract
This paper analyzes the relationship between the industry bank loan concentration and its risk using the Korean bank loan data. We focused on the construction and real estate industry which are controversial on the non performing loans. We used the construction or leasing real estate industry bank loan ratio of the corporate bank loan as the bank loan concentration proxies. The bank risk are measured as the equity capital rate or the size of non performing loans. According to the results of this research, the preceding bank loan ration of the construction industry or the leasing real estate industry decreases the non performing loans and increases the equity capital rate. The bank loan concentration to the specific industry may not increase bank risk. The bank loan concentration may decrease the information asymmetry and improve the screening abilities the non performing loans. We suggest that the bank loan concentration on the construction or leasing real estate industry in the Korean economy may not directly connected to the bank risk.
Keywords
Bank loan concentration; Bank Risk; Construction industry; Real estate industry;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Diamond, D. Financial Intermediation and Delegated Monitoring. Review of Economic Studies 51, pp. 393-414. 1984. DOI: http://dx.doi.org/10.2307/2297430   DOI
2 Beck, T. and O. D. Jongbe. Lending Concentration, Bank Performance and Systemic risk., The World Bank. pp. 1-46. 2013. DOI: http://dx.doi.org/10.1596/1813-9450-6604   DOI
3 Saunders, A. and Cornett, M. Financial Institutions Management., McGraw Hill.
4 Lee. S. W. The Industry Bank Loan Concentration and Its Potential Risk. Journal of Financial Regulation and Supervision. Vol. 1. pp. 1-27. 2014.
5 Kamp, A., Pfingsten, A., Behr, A., Memmel, C. Diversification and the banks'risk-return-characteristics: evidence from loan portfolios of German banks. Discussion Paper, Deutsche Bunderbank. 2007.
6 Boyd, J. H., Runkle, D. E., "Size and performance of banking firms", Journal of Monetary Economics, Vol. 31. pp. 47-67. 1993. DOI: http://dx.doi.org/10.1016/0304-3932(93)90016-9   DOI
7 Kang, J, K,, "Analysis of Factors Affecting Banks' Wholesale Funding Ratio", Kukje Kyungje Yongu, Vol. 16., pp. 21-49. 2010. DOI: http://dx.doi.org/10.17298/kky.2010.16.3.002   DOI