Faisal Abbas

• PhD in Accounting & Finance
• Professor (Assistant) at Baba Guru Nanak University

The purpose of this study is to explore the influence of bank capital, bank liquidity level and credit risk on the profitability of commercial banks in the postcrisis period between 2011 and 2017 in Asian developed economies in comparison with the USA banking industry. The findings show that bank capital and credit risk influence profitability in A...

This study examines the impact of asset, income, and funding diversification on the risk and stability of US commercial banks ranges from 2002 to 2019 by using two‐stage instrumental variables and GMM technique. The findings reveal that funding and asset (income) diversification decreases (increases) the banks' risks. The results indicated that inc...

Purpose This study aims to analyze the moderating role of capital on the relationship between loan growth and credit risk for Islamic banks in the post-crisis era. Design/methodology/approach The study used annual data of 217 Islamic banks from 38 countries and ranges from 2010–2019. The study applies a two-step system GMM method for hypotheses te...

Purpose This study examines the connection between investor sentiment and corporate innovation in the United States, considering the magnitude of corporate information asymmetry, the implied cost of capital and the financial constraints. Design/methodology/approach The authors employ a two-step GMM framework to examine the hypotheses of this study...

This study examines the impact of financial instability (FI) on environmental degradation (ED) along with economic growth (EG), foreign direct investment (FDI), and energy consumption (EC) in five South Asian economies from 1980 to 2021. The study uses a fixed-effect panel model and a two-step system GMM for robust outcomes. The empirical findings...

This research aims to investigate the possible implications of diversification, which encompasses assets, funds, and income, on the financial performance of commercial banks within the South Asian context. This research employed a GMM framework for hypotheses testing utilizing a data set spanning from 2011 to 2023. The findings reveal that asset an...

Using the GMM framework, this paper examines the nexus between capital and profitability in the presence of economic freedom using annual data of US banks ranging from 2002 to 2022. consistent with both the financial stability and regulatory hypotheses, the present study's empirical findings reveal that economic freedom exerts a positive moderating...

Using two‐step system generalized method of moments approach, we provide empirical evidence on the impact of income, asset, and funding diversification on the cost and profit efficiency of US commercial banks from 2002 to 2019. Furthermore, we use two‐stage least squares to examine the interdependence between cost efficiency and profit efficiency....

Purpose This study examined how economic freedom and its related components, such as open markets, regulatory efficiency, rule of law and the size of government, affect bank risk behavior, focusing on the Japanese context. Design/methodology/approach The study employs a two-step GMM framework on the annual data of Japanese banks ranging from 2005...

Using the two-stage generalized linear modelling (GMM) technique, we examine the connection between economic freedom and its constituents and bank risk-taking in the US. The findings indicate that bank risk-taking restrictions are caused by restrictions on property rights, government honesty and accountability, government expenditure and taxation,...

Purpose This study aims to understand how quickly Japanese banks readjust their capital ratios (leverage, regulatory capital, tier-I capital and common equity) following an economic shock. Design/methodology/approach This study uses a two-step system GMM framework to test the study's hypotheses using the annual data of Japanese commercial and coop...

We hypothesize that both liberalization and economic freedom are double-edged swords for the banking industry because they can increase both stability and fragility of the banks. To test our hypotheses, we use the two-step GMM technique to examine the impact of economic freedom and the impacts of all of its sub-components on the risk-taking behavio...

This study aims to explore the interrelationship between risk-based capital, risk-taking, and profitability. This study employs two-stage least square (2SLS) methods on the annual data of 217 Islamic banks from 35 countries ranging from 2010 to 2019. We find that the relationship between riskbased capital and risk-taking behaviour is negative, and...

The study uses the GMM and panel OLS framework on the data of the US banks over the period ‎from 2002 to 2019 to reveal the moderating role of economic freedom on the ‎relationship between bank capital and ‎profitability. The overall findings show that ‎economic freedom and bank capital positively influence ‎banks' profitability. The results reveal...

The study applies a GMM framework on the yearly data of Japanese banks ranging from 2001 ‎to 2020 to examine the impact of economic liberalization on the ‎banks' profitability. The results reveal that the relationship between economic liberalization and banks' profitability is positive (negative) for the full sample and commercial (cooperative) ban...

This study explores the impact of investment, financial, and trade freedom on banks' risk-taking and stability of US banks by employing two-step system GMM approach over the extended period from 2002 to 2018. The findings provide evidence that financial freedom decreases risk-taking, while investment and trade freedom increase US larger banks' risk...

Purpose This study aims to investigate the relationship between capital regulation and risk-taking behavior (financial stability) concerning the impacts of the recent global (COVID-19) crisis and diverse ownership structure. Design/methodology/approach The analysis uses an unbalanced panel data set from 32 commercial banks of Bangladesh for 2000–2...

This study empirically aims to investigate the influence of diversification on cost efficiency in the context of 10 Central European countries’ (such as Hungary, Poland, Germany, Slovakia, Slovenia, Romania, Croatia, Serbia, Czech Republic and Switzerland) banks from 2011 to 2017 and employs two-stage least squares (2SLS) estimator as a methodologi...

Purpose The purpose of this study is to investigate the impact of leverage, regulatory capital and tier-I capital ratios on the ex ante and ex post risk of Japanese banks. Design/methodology/approach To test the hypotheses, the authors have implemented a panel of 507 commercial and cooperative banks of Japan over the period extending from 2001 to...

This study explores the influence of financial development on the risk-taking of large commercial banks over the prolonged period from 2002 to 2019 by using a two-step system GMM method. The results show that financial development increases risk-taking by lowering the capitalization ratio of banks. In contrast, a positive change in financial develo...

Purpose This research explores the role of economic growth to influence the inter-relationship between capital, liquidity and profitability of commercial banks in selected asian emerging economies. Design/methodology/approach To achieve the research purpose, an empirical model was constructed to examine the role of economic growth in the inter-rel...

The purpose of this study is to investigate the impact of funding liquidity risk on the banks’ risk-taking behavior. To test the hypotheses, we apply the two-step system GMM technique on US commercial banks data from 2002 to 2018. We find that funding liquidity increases the banks’ risk-taking of US commercial banks. Furthermore, banks with higher...

This research aims to investigate the influence of bank capital, risk-based capital and bank capital buffers on the behaviour of bank risk-taking by applying GMM on the data of US commercial banks ranges from 2002 to 2018. The findings show that bank capital has a positive influence on total risk. However, risk-based capital and capital buffer have...

This research intends to explore the relationship between capital buffer, nominator effect, denominator effect, and economic growth for large insured commercial banks of the USA. The study applied a two-step system Generalized Method of Moment (GMM) framework by taking the unique and comprehensive dataset over the period extending from 2002 to 2018...

This study examines the return and volatility transmission between gold and emerging Latin American stock markets during the full sample period, the global financial crisis, and the Chinese Stock market crash. Employing the VAR-AGARCH model to estimate spillovers, the results reveal the substantial return and volatility spillovers between the gold...

This study aims to examine the impact of different capital ratios on Non-Performing loans, Loan Loss Reserves, and Risk- Weighted Assets by studying large commercial banks of the United States. The study employed a two-step system generalized method of movement (GMM) approach by collecting the data over the period ranging from 2002 to 2018. The stu...

This study aims to examine the impact of different capital ratios on Non-Performing loans, Loan Loss Reserves, and Risk-Weighted Assets by studying large commercial banks of the United States. The study employed a two-step system generalized method of movement (GMM) approach by collecting the data over the period ranging from 2002 to 2018. The stud...

This study explores the relationship between capital ratio, hazard-based capital ratio, capital buffer ratio and portfolio hazard pre, pro and post-crisis time of US banks over the extended period of 2002 and 2018. The overall results show that the capital ratio, all-out risk-based capital ratio and risk-taking are decidedly related. The adjustment...

Using GMM framework on the data of the US commercial banks spanning over 2002 to 2018, this study shows that banks adjust their regulatory capital ratios faster than traditional capital ratios. Our results show that the speed of adjustment of regulatory capital ratios and traditional capital ratios increases in bank capital adequacy and bank liquid...

Using GMM framework on the data of the US commercial banks spanning over 2002 to 2018, this study shows that banks adjust their regulatory capital ratios faster than traditional capital ratios. Our results show that the speed of adjustment of regulatory capital ratios and traditional capital ratios increases in bank capital adequacy and bank liquid...

Using two-step system generalized method of moments approach, we provide empirical evidence on the impact of income, asset, and funding diversification on the cost and profit efficiency of US commercial banks from 2002 to 2019. Furthermore, we use two-stage least squares to examine the interdependence between cost efficiency and profit efficie...

The study aims to investigate the effect of conventional capital ratio, risk-based capital ratio, and capital buffer ratio on commercial bank risk-taking over the period from 2002 to 2019 using a two-step GMM method. The finding reveals that there is a positive relationship between traditional capital ratio and risk-taking for the full sample resul...

This study aims to explore investment, financial, and trade freedom's impact on banks' risk-taking. The study uses the dataset of large commercial banks of the USA from 2002-2018. The findings prove that financial freedom reduces the bank's risk-taking, whereas investment and trade freedom increase large commercial banks' risk-taking. The behavior...

The purpose of this study is to explore how in the current conditions of the developed and developing economies in Asia capital and profitability of commercial banks influence each other simultaneously. This study uses data for 294 commercial banks from the developed and developing nations of Asia covering the period from 2012 to 2017. The Simultan...

This paper aims to explore the behavior of major regulated commercial banks. The study is aimed to examine that how these banks adjust their leverage and regulatory ratios by applying a two-step GMM framework. The Utilization of asset growth facilitates well-capitalized banks to restore their intended capital ratio and under-capitalized banks use e...

This research explores the balanced panel data to examine the level of capital adjustment for major insured commercial banks over the 2002-2018 period using a two-step GMM estimator. The findings show that the speed of adjustment of the large insured commercial banks is faster than that of non-financial companies. The results contribute to a slower...

This study aims to explore how different capital ratios influence the risk-taking of large commercial banks of the USA. The study collects the data from FDIC for commercial banks from 2003 to 2019. We use a two-step GMM method to manage the endogeneity, simultaneity, heteroscedasticity, and auto-correlations issue. The findings conclude that an inc...

Enormous fluctuations in exchange Rates have been observed during the last three decades as compared to the 1950s and 1960s. Numerous explanations have been extended to capture the movement of exchange rates with the help of available theories in hand. But some factors can be identified which influence the process of exchange rate determination. By...

This study examines the speed of adjustment of the leverage and regulatory capital ratios between 2002 and 2018 for large commercial banks of the USA. The study applies a two-step system GMM technique to obtain the speed of adjustment. The results prove that higher-quality capital requires greater time to restore equilibrium after an economic shock...

The purpose of this study is to explore the influence of bank liquidity and bank risk on bank capital among emerging economies of Asia in post crisis conditions. The data is collected for 379 banks from Bank scope database. The data for this paper includes post crisis period ranging from 2011 to 2016. Linear regression panel-corrected standard erro...

The purpose of this study is to investigate the factors promoting knowledge sharing and knowledge creation in banking sector of Pakistan. With the help of literature review, we identified most important factors in knowledge sharing and knowledge creation including organizational culture, trust, motivation, employee’s attitude and socialization. The...

The purpose of this study is to check the financial performance of the commercial banks of Pakistan by covering the period of five years from 2007 to 2011. The reasons for choosing this period are the repaid growth of the banking sector of Pakistan and revolutionary change in the financial performance of banks. There are more than twenty scheduled...

The aim of study is to analyze the performance of Textile sector in Pakistan covering the pre–crisis period, post crisis period and period of crisis as well. For this purpose data were collected from overall textile sector from available sources for the period of five years. According to the most of the analysts, financial crisis 2008-09 is serious...