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Informed by an analysis of the survey results as well as post-survey interviews with respondents, our report explores seven key themes that illuminate how banks are responding to a changed industry, even as they address additional challenges. 1. Banks are more alert to the speed of risk. 93% of respondents noted a need for the banking industry ...
Aug 1, 2023 · Using panel data from a sample of 535 banks from OECD countries for the 2004–2016 period, this paper examines whether the influence of banking regulation on banks’ risk is channeled through the level of investors’ protection.
Feb 28, 2022 · Nonfinancial risks arise from the bank’s operations (processes and systems) and are similar to risks faced by companies outside the financial sector (“corporates”). Over time, corporates have developed approaches to address nonfinancial risk while adapting approaches developed by banks to manage financial risk, which corporates also face.
Jun 7, 2019 · Instead of declarations about zero tolerance for certain types of risk, banks need a more realistic perspective on avoiding risks, based on an objective fact base. If this is a risk we are comfortable taking, how much should we take? And does our risk appetite adequately reflect our control effectiveness? Banks will need to rethink investments ...
Specifically, we study whether banks that rating agencies classify as likely to receive government support increase their risk-taking. An important novelty of our paper is the way we measure the likelihood of a bank receiving government support.
We find that public banks are likely to exhibit less risk taking than their private counterparts in countries with weak institutions. Further, we find that publicly traded banks are engaging in...
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Mar 9, 2024 · Our analyses based on a sample of nearly 1900 US Banking Holding Companies in the 1990–2020 period indicate that increasing capital actually leads to higher risk-taking, which contradicts the skin-in-the-game hypothesis.
