商业银行中间业务外文文献翻译
文献出处：Aktan B, Chan S G, Zikovic S, et al. Off-balance sheet activities impact on commercial banks performance: an emerging market perspective[J]. Ekonomska Istrazivanja ,2013, 26: 117-132. 原文
OFF-BALANCE SHEET ACTIVITIES IMPACT ON COMMERCIAL BANKS
PERFORMANCE: AN EMERGING MARKET PERSPECTIVE
Bora; Sok ; Sasa; Pinar
ABSTRACT
This paper examines the effect of off-balance sheet (OBS) activities on performance of the banks listed on Istanbul Stock Exchange (ISE). We use four measures of performance including bank's risk exposures, profitability, leverage, and liquidity position. We find that both bank-specific risk and foreign exchange rate risk are positively related with OBS activities. This indicates that OBS activities increase bank-specific and foreign exchange risk exposures of the banks in Turkey. The positive relationship might serve as a warning to bank's speculative action using OBS transactions in the market. The results also indicate that OBS activities, due to its hedging perception, improve bank's stock returns but have a negative impact on return on equity. In addition, OBS activities do not have a statistically significant impact on leverage or liquidity.
Keywords: Banking; Off-balance sheet activities; Risk exposure; Istanbul Stock Exchange; Turkey 1. INTRODUCTION
In today's financial markets, one of the striking developments is the increasing tendency of banks to engage in off-balance sheet (OBS) activities. In recent years the development and deregulation of the financial markets, improvements in financial innovation and decreases in banks' margins, as a result of low-quality loan applicants, encourage the banks to offer new products and services to increase their profits (Jurman, 2005). Edwards and Mishkin (1995) argue that the rate of traditional banking has been decreasing while the OBS activities have been increasing. 商业银行中间业务外文文献翻译
Decreasing profitability of traditional banking and increasing competitiveness of markets actually forces banks to undertake OBS activities. Ebrahim and Hasan (2004) analysed the banks' profits from traditional and non-traditional activities. They argue that improvement of non-interest earnings of the banks arose from the development of new types of financial instruments.
OBS or fee-related items such as guarantees, commitments and derivatives sometimes become the main sources of bank revenues. By engaging in OBS activities, besides providing high earnings, banks can avoid regulatory costs or taxes since reserve requirements and deposit insurance premiums are not imposed on OBS activities. However, these activities can involve risks such as market, operational and credit risks, which might affect bank's solvency and liquidity. On the other hand, significant growth in derivatives activities by commercial banks might be explained by increased interest rate, credit and foreign exchange risk exposures, which banks face in domestic and international markets. Derivatives offer a way to hedge these risks without having to make extensive changes on the balance sheet.
This paper aims to examine the effect of OBS activities on the performance of the banks listed on Istanbul Stock Exchange (ISE). We examine the effect of OBS activities on bank's risk exposures, profitability, leverage, and liquidity position. Since we could not find any study dealing with this topic in Turkey we try to fill this gap.
The paper proceeds as follows; section 2 presents the background on banking system and OBS activities in Turkey, section 3 provides a review of the literature, section 4 discusses methodology and data, section 5 presents our empirical results and analysis. Section 6 presents our conclusions.
II. TURKISH BANKING SYSTEM AND THE DEVELOPMENT OF THE OFF- BALANCE SHEET TRANSACTIONS
After 1982, in Turkey, commitments were excluded from the balance sheet and became the main item of OBS. It continued to be the major item in the following years. With the increase in public sector borrowing during 1990s the repo transactions became more attractive and their share increased within OBS items. Repo transactions were subsequently excluded from OBS items and included into balance sheet. Since 2000 the use of derivative financial instruments has become widespread and after excluding safe-custody and pledged securities, the derivatives constituted 43 percent 商业银行中间业务外文文献翻译
of OBS items at the end of 2008. Safe-custody and pledged securities item which is a sub account of OBS items includes the securities deposited in Settlement and Custody Bank of Istanbul Stock Exchange (ISE). Following the change of methodology applied in calculating and accounting of these securities, the share of safe-custody and pledged securities item within total OBS items accounts for approximately 95 percent since 2005. Figure 1 indicates that the derivative transactions experienced an increasing trend during the period of 2002-2007. As a result of the fact that banks reduced their on-balance sheet foreign exchange positions since the global crisis, derivative transactions in general experienced a decrease in 2008. III. PREVIOUS STUDIES
There are a number of studies on the changing patterns of the structure of banks' income with the inclusion of OBS activities. Among them, Rogers and Sinkey (1999:8) investigated the relationship between the non-traditional activities and some variables by analyzing financial statements of 8.931 banks for the period 1989-1993. They found a negative and significant relationship between net interest margin and non-traditional activities. In addition, they argued that mostly the big banks focused on non-commercial activities.
Davis and Tuori (2000) analyzed the structure of banks' income in OECD countries for the period 1979-1995, using the data on bank profitability. They found evidence of changes in the income structure from interest incometo non-interest income, with rapid growth of OBS activities in most of the EU countries. In addition, their results indicate that larger banks tend to maintain high levels of non-interest income. In addition to the analysis done on the changing patterns of the structure of banks' income with the inclusion of OBS activities, empirical investigation has also been done on the risks associated with these activities. Among these studies, Boyd and Graham (1986:10) examined the risks associated with diversification of banks into non-bank activities for the period 1971-1983. They found no significant relationship between non-bank activities and risk. However, non-bank activities were positively related to the risk of the banks during the period 1971-1977. They highlighted that the level of association between risk of failure and non-bank activities increases when there is no tight regulation on non-bank activities. As a result, the positive relationship between the two variables disappears when there are more stringent regulations.
商业银行中间业务外文文献翻译
