Abstract
This paper analyzes the relationship between the industry bank loan concentration and its risk using the Korean bank loan data. We focused on the construction and real estate industry which are controversial on the non performing loans. We used the construction or leasing real estate industry bank loan ratio of the corporate bank loan as the bank loan concentration proxies. The bank risk are measured as the equity capital rate or the size of non performing loans. According to the results of this research, the preceding bank loan ration of the construction industry or the leasing real estate industry decreases the non performing loans and increases the equity capital rate. The bank loan concentration to the specific industry may not increase bank risk. The bank loan concentration may decrease the information asymmetry and improve the screening abilities the non performing loans. We suggest that the bank loan concentration on the construction or leasing real estate industry in the Korean economy may not directly connected to the bank risk.
| Translated title of the contribution | The Bank Loan of Construction·Real Estate Industry and Bank Risk |
|---|---|
| Original language | Korean |
| Pages (from-to) | 5267-5272 |
| Number of pages | 6 |
| Journal | 한국산학기술학회논문지 |
| Volume | 16 |
| Issue number | 8 |
| DOIs | |
| State | Published - Aug 2015 |