EFFECTS BETWEEN POWER MARKET, EFFICIENCY AND RISK: EVIDENCE FROM ASEAN COMMERCIAL BANKING SYSTEMS

Abstract

This paper examines affecting the power market, the efficiency and the risk of ASEAN commercial banks in the context of integration. The study data included 118 ASEAN commercial banks from Bankscope sources, 2002-2017. The author uses two-step SGMM estimates for dynamicand unbalanced table data. The power market is measured by the Lerner index and risk is measured by Zscore and LLPTA (Loan Loss Provision ratio). Efficiency is measured by ROA, ROE and ROD (return on total deposit). The research results provided policy implications for investors, managers to improve the power market and financial efficiency of ASEAN commercial banks through mitigating bank risks.