Abstract
The importance of service industry has been increasing with the growth of the Korean economy. The bank loan concentration on the specific industry with its growth can trigger the bank risk through the increase of bank's earning volatility. This research focuses on the relationship between the growth of bank loan to the service industry and the bank's earning volatility. According to the results of this research, there is a negative relation between the growth of bank loan to the service industry and the bank's earning volatility. The small volatility in the service business industry may affect these results. In the meanteime, the more volatile earnings with the bank loan concentration on the specific industry may be more easily found in the local banks or the specialized banks which have the less diversified bank industry loan portfolios than the commercial banks.
| Translated title of the contribution | Bank Loan Concentration on Service Industry and Banks' Earning Volatility |
|---|---|
| Original language | Korean |
| Pages (from-to) | 123-38 |
| Number of pages | 16 |
| Journal | 상업교육연구 |
| Volume | 29 |
| Issue number | 3 |
| DOIs | |
| State | Published - Jun 2015 |