New Economics and Finance Findings Reported from University of Birmingham (Bank opacity and risk-taking: Evidence from analysts’ forecasts)

  • Samuel Fosu
  • Collins G. Ntim
  • William Coffie
  • Victor Murinde

Press/Media: Press / Media


My paper "bank opacity and risk-taking: Evidence from analysts' forecasts" published in Journal of Finanacial Stability has received coverage in the media.

The Investe Weekly news covered it with the title above, quoting its title, results and concluding remarks.

The full link to the coverage is provided below:


Period5 Jan 2018

Media coverage


Media coverage

  • TitleBank opacity and risk-taking: Evidence from analysts’ forecasts
    Media name/outlet Investment Weekly News
    Media typeWeb
    Country/TerritoryUnited Kingdom
    DescriptionWe depart from existing literature by invoking analysts’ forecasts to measure banking system opacity and then investigate the impact of such opacity on bank risk-taking, using a large panel of US bank holding companies, over the 1995–2013 period. We uncover three new results. Firstly, we find that opacity increases insolvency risks among banks. Secondly, we establish that the relationship between opacity and bank risk-taking is accentuated by the degree of banking market competition. Thirdly, we show that the bank business model moderates the risk-taking incentives of opaque banks, albeit only marginally. Overall, these findings suggest that the analysts forecast measure of bank opacity is useful for understanding risk-taking by publicly-traded banks, with important implications for bank stability.
    PersonsSamuel Fosu, Collins G. Ntim, William Coffie, Victor Murinde