Abstract

A study on relationship between CAMELS Index's and Risk taking: A case study of Iranian banking industry

Highlights

  • Banking industry has been considered as the most important financial institutions undertake an important role in optimal appropriation of financial short-term resources (Khan, 1997; Al-Jarhi & Iqbal, 2001)

  • Dang (2011) performed an empirical study of American International Assurance Vietnam (AIA) where the primary objective was to determine whether the CAMEL framework played a essential role in banking supervision or not

  • The study identified the advantage as well as drawbacks, which the CAMEL system brings to AIA

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Summary

Introduction

Banking industry has been considered as the most important financial institutions undertake an important role in optimal appropriation of financial short-term resources (Khan, 1997; Al-Jarhi & Iqbal, 2001). Palvia et al (2009) exploited a large panel of U.S commercial banks to investigate the association between Chief Executive Officer (CEO) and Chairperson gender and bank risk-taking during the recent financial crisis. They postulated that female executives could constrain excessive risk-taking in commercial banks, and could thereby reduce default risk during periods of market stress. Their results indicated that banks with female CEOs were more conservative and could hold higher levels of equity capital. They reported that the same regulation had different influences on bank risk taking depending on the bank's corporate governance structure

The proposed study
Results
The results
Testing the first hypothesis
The first sub-hypothesis: the relationship between RT and CA
The second sub-hypothesis: the relationship between RT and MQ
The fourth sub-hypothesis: the relationship between RT and EQ
The fifth sub-hypothesis: the relationship between RT and LQ
Conclusion
Full Text
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