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Risk tasking behaviour and ownership in the banking industry: the Spanish evidence

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  • Teresa garcía Marco

    (Universidad Pública de Navarra, Departamento de Fundamentos del Análisis Económico II.)

  • M. Dolores Robles-Fernández

    (Universidad Complutense de Madrid, Dpto. de Fundamentos y Análisis Económico II)

Abstract

This paper analyses the determinant of risk_taking in the Spanish financial intermediaries with special emphasis on the ownership structure and size of the different entities. On the one hand, the soecific legal configuration of Spanish Savings banks may lead them to differ from Commercial banks in their risk behaviour. In particular, they may make riskier investments. Nevertheless,other theories indicate that greater stockholder control in Commercial banks may induce them towards greater risk_taking in certain situations. In this paper we test these hypotheses with a dynamic pañel data model (1993_2000) for Spanish Commercial banks and Savings banks. We analyse whether differences in risk behaviour are related to different ownership structures or to other factors such as the size of the entity.

Suggested Citation

  • Teresa garcía Marco & M. Dolores Robles-Fernández, 2005. "Risk tasking behaviour and ownership in the banking industry: the Spanish evidence," Documentos de Trabajo del ICAE 0507, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    • Handle: RePEc:ucm:doicae:0507
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    More about this item

    Keywords

    Commercial banks; Savings banks; Corporate control; Ownership structure; Bank risk_taking;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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