Income diversification and liquidity risk in ASEAN-5 banks: A Bayesian perspective
Year: 2025
Type: article
Abstract: 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.
Source: PLoS ONE
Authors: Quynh Nga Duong, Nguyen Thuy Khue Tran, Thi Phuong Thao Dang
Institution: Vietnam Aviation Academy
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $2,382
OpenAlex ID: W4408221124