Investment, Financial, Trade Freedom and Risk-taking: Empirical Evidence from USA‎

This study aims to explore investment, financial, and trade freedom impact on banks’ risk-taking. A unique dataset of large commercial banks the USA covering period 2002-2018 is used. The findings prove that financial reduces bank’s risk-taking whereas investment increase in observed period. behavior due under-capitalized low-liquid seems be marginally less impacted as compared well-capitalized high-liquid banks. are robust using loan loss reserves a risk measure subclassification sample. results suggest intervention government decisive developing degree economic for stability system.