TY  - CHAP
AB  - Abstract U.S. bank holding companies (BHCs) have experienced dynamic changes over a period of 2000–2010. We find that the size distribution of sample banks becomes highly positively skewed with a small number of big banks becoming super-sized, and these big banks tend to take extra risk by holding derivative positions for trading purposes. The ten largest risk-taking banks hold about 70% of total assets of all the sample banks in 2010. We investigate whether the risk-taking activities of the BHCs translate into higher risk-adjusted return performance. In extensive panel regression analyses, we find that the risk-taking strategies of large banks by holding derivative positions for trading purpose do not show the clear evidence of enhancing risk-adjusted performance. We find that negative impacts of extra risk-taking on the risk-adjusted performance become bigger with the size of banks.
VL  - 14
SN  - 978-1-78350-170-0, 978-1-78350-171-7/1569-3767
DO  - 10.1108/S1569-3767(2013)0000014008
UR  - https://doi.org/10.1108/S1569-3767(2013)0000014008
AU  - Kim Jinyong
AU  - Kim Yong-Cheol
PY  - 2013
Y1  - 2013/01/01
TI  - Super-size banks: Is risk-taking rewarding?
T2  - Global Banking, Financial Markets and Crises
T3  - International Finance Review
PB  - Emerald Group Publishing Limited
SP  - 115
EP  - 140
Y2  - 2024/04/16
ER  -