The impact of off-balance-sheet regulations on bank risk-taking: Evidence from China.
Ontology highlight
ABSTRACT:
SUBMITTER: Zhang Q
PROVIDER: S-EPMC7366963 | biostudies-literature |
REPOSITORIES: biostudies-literature
Similar Datasets
Project description:By utilizing the Fixed effect and GMM estimators for a sample of 57 Islamic banks and 102 conventional banks from 10 countries for the period 2002-2018, we examine the effect of the audit committees' and Sharia committees' effectiveness on the bank risk-taking behavior and its transmission mechanisms. The results reveal that an audit committee's independence, number of meetings, and financial expertise negatively affect conventional banks' risk-taking, suggesting that the high effectiveness of their audit committees may constrain banks' risk-taking activities. However, no such relationship is evident or observed case of Islamic banks. Instead, with a different transmission mechanism, the proportion of female members and the financial expertise in the Sharia committees negatively affect risk-taking, but the Sharia committee size positively affects risk-taking in Sharia banks. These results indicate that a Sharia committee's high effectiveness can constrain risk-taking behaviors in Islamic banks.
| S-EPMC8379450 | biostudies-literature
Project description:We point out that the largest private shareholders can use their information advantage of the industry to influence banks' industry lending behavior. Using a sample of Chinese city commercial banks, we find that increasing of ownership stake of the largest private shareholders leads banks to lend more to their industries. Interestingly, the largest state-owned shareholders do not have this effect. More importantly, we confirmed the channel of the information advantage by analyzing the bank's industry NPL ratio and the listed company's maximum loan amount in the bank. Of course, the effect of the largest private shareholders is achieved by intervening in board decisions. In addition, the ownership structure can influence this effect.
| S-EPMC9612559 | biostudies-literature
Project description:Earlier research shows that delaying the realization of a lottery (temporal distance) increases risk tolerance. Presumably, this happens because temporal distance protects one from encountering the negative emotions produced when facing risk. However, no study has tested whether people that made a choice in the presence of temporal distance would actually change their decision later on (in the absence of temporal distance), towards the safer choice. To test this, 137 participants were subject to actual temporal distance, consisting of a four-week waiting period. To explore how each participant behaved "in the heat of the moment" (in the absence of temporal distance), we assessed their electrodermal activity and analysed self-description measures of susceptibility to affect. Participants had to choose between 40 lottery pairs (they could win up to the equivalent of about $400 US; the expected payout for each participant was about $12). Results showed that, contrary to expectations, participants tended to choose riskier lotteries after the waiting period. The results of an additional experiment suggest that this is not the result of prior exposure to the same set of lotteries, however, interestingly, an exploratory analysis showed that the main effect was driven by the behaviour of male participants. We discuss possible explanations for our surprising main finding and its implications for studies on temporal distance.
| S-EPMC6224535 | biostudies-literature
Project description:This paper investigates the impact of bank regulation and ownership on the risk-taking behavior of financial institutions in the MENA region. We test the hypothesis that the effect of regulation on bank risk depends on the type of ownership structure. The public and private views of bank regulation are used to explain the relationship between regulatory measures and bank risk. We find that the official supervisory index exerts a positively associated with bank credit risk which is in line with ‘private interest view’ of bank regulation; however, private monitoring does have an opposite effect. The analysis of the regulatory measures impact on bank insolvency risk provides further support of the private interest view regarding the impact of market discipline. In addition to regulations, ownership structure (e.g., ownership concentration and foreign ownership) also plays a significant role in shaping the risk-taking behavior of banks in the MENA region. Our analysis reveals that the effect of banking regulations on risk-taking behavior strongly depends on the type of ownership structure prevailing in each banking system (Islamic and conventional). Our findings inform regulatory authorities concerned with improving the financial stability of banking sectors in the MENA countries and other emerging economies where Islamic and conventional banks co-exist, to carefully tailor banking reform initiatives depending on the type of the banking system as they may pursue different risk management strategies. Supplementary Information The online version contains supplementary material available at 10.1007/s11846-022-00529-5.
| S-EPMC8818367 | biostudies-literature
Project description:BackgroundProcedures for priority setting need to incorporate both scientific evidence and public values. The aim of this study was to test out a model for priority setting which incorporates both scientific evidence and public values, and to explore use of evidence by a selection of stakeholders and to study reasons for the relative ranking of health care interventions in a setting of extreme resource scarcity.MethodsSystematic search for and assessment of relevant evidence for priority setting in a low-income country. Development of a balance sheet according to Eddy's explicit method. Eight group interviews (n-85), using a modified nominal group technique for eliciting individual and group rankings of a given set of health interventions.ResultsThe study procedure made it possible to compare the groups' ranking before and after all the evidence was provided to participants. A rank deviation is significant if the rank order of the same intervention differed by two or more points on the ordinal scale. A comparison between the initial rank and the final rank (before deliberation) showed a rank deviation of 67%. The difference between the initial rank and the final rank after discussion and voting gave a rank deviation of 78%.ConclusionEvidence-based and deliberative decision-making does change priorities significantly in an experimental setting. Our use of the balance sheet method was meant as a demonstration project, but could if properly developed be feasible for health planners, experts and health workers, although more work is needed before it can be used for laypersons.
| S-EPMC2096625 | biostudies-literature
Project description:Surface mass balance (SMB) provides mass input to the surface of the Antarctic and Greenland Ice Sheets and therefore comprises an important control on ice sheet mass balance and resulting contribution to global sea level change. As ice sheet SMB varies highly across multiple scales of space (meters to hundreds of kilometers) and time (hourly to decadal), it is notoriously challenging to observe and represent in models. In addition, SMB consists of multiple components, all of which depend on complex interactions between the atmosphere and the snow/ice surface, large-scale atmospheric circulation and ocean conditions, and ice sheet topography. In this review, we present the state-of-the-art knowledge and recent advances in ice sheet SMB observations and models, highlight current shortcomings, and propose future directions. Novel observational methods allow mapping SMB across larger areas, longer time periods, and/or at very high (subdaily) temporal frequency. As a recent observational breakthrough, cosmic ray counters provide direct estimates of SMB, circumventing the need for accurate snow density observations upon which many other techniques rely. Regional atmospheric climate models have drastically improved their simulation of ice sheet SMB in the last decade, thanks to the inclusion or improved representation of essential processes (e.g., clouds, blowing snow, and snow albedo), and by enhancing horizontal resolution (5-30 km). Future modeling efforts are required in improving Earth system models to match regional atmospheric climate model performance in simulating ice sheet SMB, and in reinforcing the efforts in developing statistical and dynamic downscaling to represent smaller-scale SMB processes.
| S-EPMC6774314 | biostudies-literature
Project description:Circadian rhythm disturbances have long been associated with the development of psychiatric disorders, including mood and substance use disorders. Adolescence is a particularly vulnerable time for the onset of psychiatric disorders and for circadian rhythm and sleep disruptions. Preclinical studies have found that circadian rhythm disruption (CRD) impacts the brain and behavior, but this research is largely focused on adult disruptions. Here, we sought to determine the long-term behavioral and neurobiological effects of CRD during early adolescence by exposing mice to 12 h shifts in the light/dark cycle. We hypothesized that adolescent CRD would have a greater effect on psychiatric-related behaviors, relative to adult disruption. To identify possible mechanisms, we also measured gene expression in brain regions relevant to circadian rhythms, mood and reward. We found that disruption during early adolescence, but not adulthood, persistently increased exploratory drive (risk-taking behavior) and cocaine preference when tested later in life. Interestingly, we found sex differences when intravenous cocaine self-administration was tested. While female mice with a history of adolescent CRD had a greater propensity to self-administer cocaine, as well as increased motivation and cue-induced reinstatement, male adolescent CRD mice had reduced motivation and extinction responding. Overall, adolescent CRD in mice caused persistent increases in risky behavior, cocaine reward and cocaine self-administration, which suggests that CRD during adolescence may predispose individuals towards substance use disorders. Importantly, we found that many transcripts were affected by adolescent CRD and these were largely distinct across sex and brain region. Future research is required to elucidate how adolescent CRD affects behaviors relevant to mood- and substance use-related disorders across the 24-hour day, as well as to identify intervention strategies to alleviate disruption during adolescence and novel therapeutic approaches once symptoms have begun.
2024-11-25 | GSE282275 | GEO
Project description:Previous evidence from developed nations has suggested that more trusting individuals are more likely to take financial risks, such as investing in the stock market. Previous studies have found that Chinese citizens have particularly high generalized trust and are more risk-seeking in investment compared with Americans, which makes China an interesting case. The current study examines the relation between generalized trust and stock market participation in China at both a contextual and individual level. Across provinces, a lower level of generalized trust was associated with stock market participation. For example, the stock market participation was four times higher in provinces with the lowest level of perceived fairness than in provinces with the highest level of perceived fairness. The contextual effects of less generalized trust suggest an association between risk-taking behaviors and societal level inequality. At the individual level, trust of strangers was associated with risk preference in highly educated and wealthy people but its effect on risk behaviors was not clear. The findings suggest that trust may affect financial risk-taking behavior at different levels through different pathways, and that cultural differences in understanding of trust also need to be considered.
| S-EPMC6070696 | biostudies-literature
Project description:Here, we sought to quantify the effects of experienced fear and worry, engendered by the COVID-19 pandemic, on both cognitive abilities-speed of information processing, task-set shifting, and proactive control-as well as economic risk-taking. Leveraging a repeated-measures cross-sectional design, we examined the performance of 1517 participants, collected during the early phase of the pandemic in the US (April-June 2020), finding that self-reported pandemic-related worry predicted deficits in information processing speed and maintenance of goal-related contextual information. In a classic economic risk-taking task, we observed that worried individuals' choices were more sensitive to the described outcome probabilities of risky actions. Overall, these results elucidate the cognitive consequences of a large-scale, unpredictable, and uncontrollable stressor, which may in turn play an important role in individuals' understanding of, and adherence to safety directives both in the current crisis and future public health emergencies.
| S-EPMC8601558 | biostudies-literature
Project description:Modafinil, a wake-promoting agent used to treat sleep disorders, is thought to enhance cognition. Although modafinil has shown promise as a pharmacotherapy for the treatment of cocaine dependence, it is unknown to what extent cognitive effects may play a role in such treatment. We examined the effect of modafinil on the Balloon Analogue Risk Task (BART), a behavioral measure in which higher scores are purported to reflect a greater propensity for risk-taking. Thirty cocaine dependent individuals, enrolled in a randomized clinical trial of modafinil 400mg (n=12) versus placebo (n=18), were administered the BART during the second week of inpatient treatment for cocaine dependence. A comparison cohort of healthy participants (n=19) performed the BART under similar conditions. Modafinil treatment was associated with significantly higher BART scores (p=0.01), which were comparable to scores in healthy persons. BART scores in placebo treated participants were much lower than previously reported in healthy participants, and lower than those observed in the comparison cohort. As propensity toward risk taking is typically associated with higher BART scores as well as increased risk for substance use, our findings may reflect a novel aspect of cognitive impairment related to chronic cocaine use. Notably, the low BART scores reflect highly suboptimal performance on the task, and the observed effect of modafinil may indicate a normalization of this impairment and have implications for treatment outcome.
| S-EPMC4026273 | biostudies-literature