Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective.

Our research employed Bayesian linear regression utilizing an adaptive Metropolis-Hastings method with Gibbs sampling to assess the influence of bank income diversification on the liquidity risk of five ASEAN banks. The results indicate a positive relationship between bank liquidity risk and income...

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Main Authors: Quynh Nga Duong, Nguyen Thuy Khue Tran, Thi Phuong Thao Dang
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2025-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0316949
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author Quynh Nga Duong
Nguyen Thuy Khue Tran
Thi Phuong Thao Dang
author_facet Quynh Nga Duong
Nguyen Thuy Khue Tran
Thi Phuong Thao Dang
author_sort Quynh Nga Duong
collection DOAJ
description Our research employed Bayesian linear regression utilizing an adaptive Metropolis-Hastings method with Gibbs sampling to assess the influence of bank income diversification on the liquidity risk of five ASEAN banks. The results indicate a positive relationship between bank liquidity risk and income diversification, as well as loan interest rates. This implies that banks with greater income diversification tend to have higher liquidity ratios and reduce the bank risk and conversely. Therefore, the study suggests that banks should enhance their diversification efforts to mitigate their liquidity risk.
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spelling doaj-art-e52e455b57cd4552a5dd78978c46c3802025-08-20T02:57:32ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01203e031694910.1371/journal.pone.0316949Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective.Quynh Nga DuongNguyen Thuy Khue TranThi Phuong Thao DangOur research employed Bayesian linear regression utilizing an adaptive Metropolis-Hastings method with Gibbs sampling to assess the influence of bank income diversification on the liquidity risk of five ASEAN banks. The results indicate a positive relationship between bank liquidity risk and income diversification, as well as loan interest rates. This implies that banks with greater income diversification tend to have higher liquidity ratios and reduce the bank risk and conversely. Therefore, the study suggests that banks should enhance their diversification efforts to mitigate their liquidity risk.https://doi.org/10.1371/journal.pone.0316949
spellingShingle Quynh Nga Duong
Nguyen Thuy Khue Tran
Thi Phuong Thao Dang
Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective.
PLoS ONE
title Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective.
title_full Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective.
title_fullStr Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective.
title_full_unstemmed Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective.
title_short Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective.
title_sort income diversification and liquidity risk in asean 5 banks a bayesian perspective
url https://doi.org/10.1371/journal.pone.0316949
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