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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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2025-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0316949 |
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| _version_ | 1850035262294327296 |
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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. |
| format | Article |
| id | doaj-art-e52e455b57cd4552a5dd78978c46c380 |
| institution | DOAJ |
| issn | 1932-6203 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| 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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