Impact of Bank Ownership Structures and Branch Networks on Bank Stability and Risk-Taking Behavior: Evidence from Pakistan
Date: Friday, November 8, 2019
Time: 3:00 PM
Venue: A-4, Academic Block, LUMS
This paper examines the effect of bank ownership structures and branch networks on bank stability and risk-taking behavior in Pakistan from 1996-2005. Using a Multiple Indicators Multiple Causes (MIMIC) model, results show that foreign ownership is associated with highest stability and lowest risk-taking by banks. Private ownership is also associated with lower risk-taking than state-ownership. However, no statistically significant difference between the stability of private and state-owned banks is found. Using differences-in-differences and propensity score matching, results show that privatization and M&A lead to higher stability and lower risk-taking behavior, while increases in bank branch networks lead to an improvement in risk but lowering of stability.
About the Speaker
Dr. Adeel Tariq
Assistant Professor at Lahore University of Management Sciences (LUM
Dr. Adeel Tariq is an Assistant Professor (Tenure Track) of Economics at the Lahore University of Management Sciences. He is a Fulbright Scholar and holds a Ph.D. in Economics from Binghamton University, a M.Sc. in Economics from the Lahore University of Management Sciences and a B.Sc. (Hons) in Economics & Management from the University of London. His research interests include Applied Econometrics, Applied Microeconomics and Labor Economics. Currently, he is examining aspects of efficiency and productivity using the stochastic frontier methodology.