Template-Type: ReDIF-Article 1.0
Author-Name: Dung Viet Tran
Author-Workplace-Name: Saigon International School of Business, Banking University Ho Chi Minh City, 36 Ton That Dam Str., Ho Chi Minh City 700000, Vietnam
Author-Email: dungtv@buh.edu.vn
Title: Does Bank Diversification Affect Funding Cost? Evidence from the U.S. Banks
Abstract: We investigate how diversification affects the U.S. bank holding companies’ funding cost. We document consistent evidence of a lower deposit rates for banks that engage more in non-traditional banking activities. The quantile regressions which dissect the behaviour of banks at the right tail of deposits costs distribution, point out the leveraged effect of diversification is more pronounced with lower-deposits costs banks. The study also suggests diversified banks enjoy lower funding cost during the crisis. Our study is of interest to regulators and policymakers.
Keywords: Diversification, funding cost, deposit rates
Pages: 87-107
Volume: 16
Issue: 1
Year: 2020
File-URL: http://web.usm.my/journal/aamjaf/aamjaf16012020/aamjaf16012020_5.pdf
File-Format: Application/pdf
Handle: RePEc:usm:journl:aamjaf01601_87-107