Bank maturity, income diversification, and bank stability

The purpose of this research is to examine the influence of bank life cycle or bank maturity on income diversification (ID) and stability. In addition, this research investigates the ID relationship with bank stability. Drawing on the dynamic resource-based view and modern portfolio theory, this res...

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Autores principales:	Waqas Tariq, Muhammad Usman, Adeel Tariq, Robina Rashid, Junming Yin, Mumtaz Ali Memon, Muhammad Ashfaq
Formato:	article
Lenguaje:	EN
Publicado:	Vilnius Gediminas Technical University 2021
Materias:	bank life cycle income diversification bank stability banking sector gmm pakistan Business HF5001-6182
Acceso en línea:	https://doaj.org/article/a6b92ead198345ba87cdec265218f0a7
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spelling	oai:doaj.org-article:a6b92ead198345ba87cdec265218f0a72021-11-23T14:08:01ZBank maturity, income diversification, and bank stability1611-16992029-443310.3846/jbem.2021.15583https://doaj.org/article/a6b92ead198345ba87cdec265218f0a72021-10-01T00:00:00Zhttps://journals.vgtu.lt/index.php/JBEM/article/view/15583https://doaj.org/toc/1611-1699https://doaj.org/toc/2029-4433The purpose of this research is to examine the influence of bank life cycle or bank maturity on income diversification (ID) and stability. In addition, this research investigates the ID relationship with bank stability. Drawing on the dynamic resource-based view and modern portfolio theory, this research examines the influence of a paramount internal factor i.e. bank life cycle or bank maturity on income diversification (ID) and stability consequence. Data were collected from the Pakistani’s commercial banks’ financial statements over the period 2005 to 2019. This research relied on the fixed effect and generalized method of moments (GMM) model to empirically test the proposed relationships. Core findings of the research reveal that bank maturity leads to enhanced ID and ID strongly influences the bank stability consequence, moreover, research findings are robust to use different measures of bank stability and GMM estimation techniques. To the authors’ best knowledge, this research is the first to report specific evidence about bank maturity as an internal driver of income diversification and stability and advances the literature seeking to understand the determinants of ID. This research also shows managers to recognize the importance of internal drivers to diversify effectively into non-interest income, and how such an effective ID translates into stability consequence.Waqas TariqMuhammad UsmanAdeel TariqRobina RashidJunming YinMumtaz Ali MemonMuhammad AshfaqVilnius Gediminas Technical Universityarticlebank life cycleincome diversificationbank stabilitybanking sectorgmmpakistanBusinessHF5001-6182ENJournal of Business Economics and Management, Vol 22, Iss 6, Pp 1492-1511 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	bank life cycle income diversification bank stability banking sector gmm pakistan Business HF5001-6182
spellingShingle	bank life cycle income diversification bank stability banking sector gmm pakistan Business HF5001-6182 Waqas Tariq Muhammad Usman Adeel Tariq Robina Rashid Junming Yin Mumtaz Ali Memon Muhammad Ashfaq Bank maturity, income diversification, and bank stability
description	The purpose of this research is to examine the influence of bank life cycle or bank maturity on income diversification (ID) and stability. In addition, this research investigates the ID relationship with bank stability. Drawing on the dynamic resource-based view and modern portfolio theory, this research examines the influence of a paramount internal factor i.e. bank life cycle or bank maturity on income diversification (ID) and stability consequence. Data were collected from the Pakistani’s commercial banks’ financial statements over the period 2005 to 2019. This research relied on the fixed effect and generalized method of moments (GMM) model to empirically test the proposed relationships. Core findings of the research reveal that bank maturity leads to enhanced ID and ID strongly influences the bank stability consequence, moreover, research findings are robust to use different measures of bank stability and GMM estimation techniques. To the authors’ best knowledge, this research is the first to report specific evidence about bank maturity as an internal driver of income diversification and stability and advances the literature seeking to understand the determinants of ID. This research also shows managers to recognize the importance of internal drivers to diversify effectively into non-interest income, and how such an effective ID translates into stability consequence.
format	article
author	Waqas Tariq Muhammad Usman Adeel Tariq Robina Rashid Junming Yin Mumtaz Ali Memon Muhammad Ashfaq
author_facet	Waqas Tariq Muhammad Usman Adeel Tariq Robina Rashid Junming Yin Mumtaz Ali Memon Muhammad Ashfaq
author_sort	Waqas Tariq
title	Bank maturity, income diversification, and bank stability
title_short	Bank maturity, income diversification, and bank stability
title_full	Bank maturity, income diversification, and bank stability
title_fullStr	Bank maturity, income diversification, and bank stability
title_full_unstemmed	Bank maturity, income diversification, and bank stability
title_sort	bank maturity, income diversification, and bank stability
publisher	Vilnius Gediminas Technical University
publishDate	2021
url	https://doaj.org/article/a6b92ead198345ba87cdec265218f0a7
work_keys_str_mv	AT waqastariq bankmaturityincomediversificationandbankstability AT muhammadusman bankmaturityincomediversificationandbankstability AT adeeltariq bankmaturityincomediversificationandbankstability AT robinarashid bankmaturityincomediversificationandbankstability AT junmingyin bankmaturityincomediversificationandbankstability AT mumtazalimemon bankmaturityincomediversificationandbankstability AT muhammadashfaq bankmaturityincomediversificationandbankstability
_version_	1718416719546941440

Bank maturity, income diversification, and bank stability

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