Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Social and Behavioral Sciences
The Impact Of Financial Regulation Policy Uncertainty On Bank Profits And Risk, Robert N. Killins, David W. Johnk, Peter V. Egly
The Impact Of Financial Regulation Policy Uncertainty On Bank Profits And Risk, Robert N. Killins, David W. Johnk, Peter V. Egly
Economics and Finance Faculty Publications and Presentations
Purpose
The purpose of this paper is to explore the impact of financial regulation policy uncertainty (FRPU) on bank profit and risk.
Design/methodology/approach
This study applies dynamic panel techniques and uses the Baker et al. (2016) FRPU index and macroeconomic variables to assess FRPU’s impact on bank profit and risk using Federal Deposit Insurance Corporation call reports from Q1 2000 to Q4 2016 for over 4,760 commercial banks.
Findings
The effect of FRPU on profitability (Return on Assets [ROA] and Return on Equity [ROE]) and risk (standard deviation of ROA and ROE) produces complex results. FRPU negatively (positively) impacts profits …