Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective.
other · Level V
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- Record sourced from PubMed, PMID 40043030.
- Also identified by DOI 10.1371/journal.pone.0316949 and PMC identifier 11882047.
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Abstract
Our research employed Bayesian linear regression utilizing an adaptive Metropolis-Hastings method with Gibbs sampling to assess the influence of bank income diversification on the liquidity risk of five ASEAN banks. The results indicate a positive relationship between bank liquidity risk and income diversification, as well as loan interest rates. This implies that banks with greater income diversification tend to have higher liquidity ratios and reduce the bank risk and conversely. Therefore, the study suggests that banks should enhance their diversification efforts to mitigate their liquidity risk.
Medical subject headings
- Income