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The Actual Individual Owner’s effect on Loan Concentration in Corporate-owned Savings Banks: Focusing on Controlled Savings Banks’ Working Experience
Journal of Insurance and Finance
2020, 31(2),
pp.3-23
DOI :10.23842/jif.2020.31.2.001
Publisher : Korea Insurance Research Institute
Research Area : Business Management
DOI :10.23842/jif.2020.31.2.001
Publisher : Korea Insurance Research Institute
Research Area : Business Management
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This study analyzes the actual individual owner’s effect on loan concentration in corporate-owned savings banks in the case that the owner has working experiences in controlled savings banks. In addition to the owner’s specific work experience, this paper also considers saving banks’ risk management capability as an additional point in this causal relation. Besides, this study confirms the relationship between the largest shareholder type and loan concentration. The empirical results show that corporate-owned savings banks have the negative effects on loan concentration. However, this effect could be reversed if the corporate-owned savings banks’ actual individual owner has working experience in the controlled savings banks. This study also investigates that the negative effects could be alleviated when savings banks have superior risk management capability. The results suggest that the financial supervisory authorities may need to consider the effects of actual individual owner.
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