| Summary: | 碩士 === 國立臺北大學 === 經濟學系 === 102 === The purpose of this study is to examine the effects of revenue diversification and bank regulation on bank performance using 476 commercial banks cross 10 Asian countries during 2004 to 2012 by the Panel Data Analysis. The major findings are as follow.
First, diversification between interest and non-interest income do positively affect bank performance, however, diversification among non-interest incomes has little effect on bank return. Banks involving in non-traditional activities, especially those fees, commissions, and trading incomes, can create higher returns.
Second, by considering activities restriction, capital regulation, and supervision capability as the proxies of bank regulation variables, empirical results show that activities restriction has little effect on bank performance, while capital regulation helping bank to accumulate higher capital will have a positive impact on bank performance. Stricter financial supervision, however, will reduce bank returns and part of the negative impacts may come from inefficient government governance.
Lastly, impacts of bank regulation on bank performance are found to be significantly different from those periods of before, during, and after the financial crisis. Periods of during and after the financial crisis, the positive impact of capital regulation on bank performance is found to turn to negative, while the negative impact of supervision capability on bank returns is found to be lessened. Results above indicate that bank regulations may have interfered banks to find ways to avoid loss and thus lowered bank returns during and after periods of the financial crisis.
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