Published Paper Details:

The Main Goals of This Study The intermediation position of commercial banks between creditors and lenders plays an important role in the process of money formation. The collection and loan of deposits for creditors makes banks a special organisation. However, the banks are exposed to risk taking in this specific banking feature. Lending will result in a build-up of risky loan portfolios, which will ultimately impact the stability of the entire banking industry. Banks' success can be calculated using various primary banking industry-unique performance measures. A bank may intentionally alter these metrics on the basis of its desired priorities and goals. However, banks may be subject to increased risk taking by these banks particular factors. The literature available shows that particular factors influence risk-taking by the bank .Therefore, this study recommends that optimal bank size should be defined effectively between commercial banks in Yemen, which will reduce risks. Moreover, this study proposes that commercial banks reassess the quality of their assets and distinguish themselves from conventional banking to reduce risk-taking.