Detail Do Banks Diversify Portfolio Risk ? A Test of The Risk-Cost Hypothesis   Oleh:  Hirota, Shin'ichi ; Tsutsui, Yoshiro Jenis: Article from Bulletin/Magazine Dalam koleksi: JAPAN AND THE WORLD ECONOMY vol. 11 no. 1 (1999), page 29-40. Topik: risks; bank diversity; portfolio; risk - cost hypothesis Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ47 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel Baltensperger (1972 a) and Baltensperger (1972 b) proposes the risk - cost hypothesis that banks decide the number of loans by considering the costs arising from diversifiable portfolio risk. Thus, the banks do not minimize operation costs, but total costs including risk costs. This paper examines empirically whether the risk - cost hypothesis is valid, using financial panel data from Japanese banks from 1981 to 1994. Estimating the first - order condition of total cost minimization together with an operation cost function, we find that the hypothesis is supported. Dividing the sample into different types of banks, it is found that the hypothesis is valid for city and regional banks, but not for second regional banks. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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