• Journal of the Korean Data Analysis Society
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• v.20 no.6
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• pp.3037-3048
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• 2018

This study tried to test the result of recent study reporting that there is no the effect of cross-subsidization by applying it to the Korean banks. Besides, the study also did the research to test the previous study that diversification toward non-interest operating sector is related with the motivation of reduction of bank risk. Main results are as follows. First, there is the effect of cross-subsidization between non-interest operating sector and interest one. The higher non-interest profit to total asset is, the lower loan growth and provision to total loan are. Second, the effect of cross-subsidization is related with the fee revenue to operating revenue rather than the fiduciary revenue to operating revenue because high fee revenue results in shrinking the lending business. Third, diversification toward non-interest sector is associated with reducing risk, and risk is not increased when the high performance of non-interest sector is occurred. This evidence is not line with DeYoung, Torna (2013) arguing that non-interest operating activities lead to increasing risk. Finally, Korean banks have to expand the activities in non-interesting sector focusing on boosting fee revenue to increase the effect of cross-subsidization against the possibility of cutting net interest margin.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.4
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• pp.197-212
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• 2022

The study uses the audited financial statements of 26 Vietnamese commercial banks listed on the Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HOSE) during the 2008-2018 period to estimate the system GMM model, which provides empirical evidence on the effect of the variables of customer deposit to total assets (DEPO) ratio, loan to assets (LTA) ratio, liquidity of commercial banks (LIQ), credit development (CRD) ratio, external funding (EFD) ratio, and credit loss provision (LLP) ratio on liquidity risk. The study confirms that commercial banks' internal factors play the most important role, and there is no empirical evidence on macro variables that affect liquidity risk. Finally, in accordance with the theoretical framework, the study uses an estimation method with the R language and the bootstrap methodology to give empirical proof of the nonlinear correlation and U-shaped graph between commercial bank size and liquidity risk. The importance of commercial bank size in absorbing and moderating the effects of liquidity shocks is demonstrated, however, excessive growth in commercial bank size would increase liquidity risk in commercial bank operations.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.841-850
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• 2021

This study aims to evaluate the relationship between bank capital, efficiency, and risk in Islamic banks. We use data from 129 Islamic banks in the world, retrieved from various data sources. We retrieved specific banking data from Moody's Analytics BankFocus and Thomson Reuters Eikon, while data at the country level was obtained from the World Bank website. This study uses various estimates both Pooled OLS (Ordinary Least Square) and Random Effect (RE). However, to overcome the issue of serial correlation which could cause bias in the results of the study, we used fixed-effect (FE) cluster estimates. The research results confirm the previous findings that bank capital positively affects bank stability (natural logarithm of Z-Score) and negatively affects credit risk (loan loss provision to total liabilities). The findings also show that efficiency has the same effect. The interaction test of bank capital and efficiency shows that efficiency encourages banks to reduce risk, including when bank capital is relatively lower. This finding is expected to have implications for the authorities to boost bank efficiency in addition to establishing several regulations related to capital. The efficiency implemented by the bank will encourage banks to act prudently so that the bank can maintain its performance through risk mitigation.

• Korean Journal of Agricultural Science
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• v.20 no.1
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• pp.88-101
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• 1993

This study is aimed at evaluating the present management status of the rural special production area development projects and identifying managerial problems to propose new direction of the political countermeasures for the projects. In the con text of implementing the five year's economic developent plans for the past three decades, agricultural production and farm-household income have also been grown rapidly. However the income gap between rural and urbarn laborer, as an internal problem, has widened during the decades and the UR problems concerning free trade of agricultural products, as an external problems, are now agonizing the small-holder farm economy in Korea. The internal and external farm problems could be solved through improvement of agricultural structure and provision of off-farm jobs for farm household income increase. As a part of the off-farm income sources, the rural special production area development projects have propelled by the government throughout the country. The main problems to be solved for the successful implementation of the projects are as follows : 1. Present loan amount by the financial fund was estimated at 6-7% of the total installation costs required. To expand and implement the project successfully, enough financial credit support with favorable terms and conditions have to be considered by the government. 2. The operation patterns of the special production area development project should be recommended from the view point of cooperative and private operation to maximize farm household incomes including profits, marketing charges and dividens. 3. Improvement of the marketing channel of the products and marketing information through TV program and other mass communication should be implemented strongly to promote marketsales by the financial supports of the government. 4. In connection with the off-farm income increase, the population migrating to urban area in outside Chungnam province equivalent to 10-12 thousand persons with age of 20-49 years should be taken into account politically to be employed in the projects in the province. 5. Surplus farm labors should be created by means of improvement of agricultural structure including large farm management with farm mechanization and job opportunities have also to be provided in connection with the rural special production area development projects. The two imminent subjects are the prerequisites to increase off-farm incomes for the farmers living in Chungnam province. 6. Required credit supports for investment and operation costs of the projects should be taken actions by the government.