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Feb 28, 2022 · Financial risks are reflected in the financial positions on banks’ balance sheets and result from their risk-taking activity. Nonfinancial risks arise from the bank’s operations (processes and systems) and are similar to risks faced by companies outside the financial sector (“corporates”).
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?
Aug 27, 2020 · Agency problems are at the heart of modern corporate finance theories but for banks, agency problems may be more important than for non-financial firms since banks are more leveraged and have stronger explicit and implicit guarantees.
Nov 10, 2021 · Non-Financial Risk Management: Emerging stronger after Covid-19. Edited by Thomas Kaiser. First published: 10 Nov 2021. Buy now. Subscriber discount i. Financial institutions and non-financial risk: Learning from the corporate approach. Thomas Poppensieker, Sebastian Schneider and Michael Thun. 2.
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.
Jul 26, 2016 · Banks are accustomed to taking on financial risk and generating profit from it. It is the premise of their business models. But nonfinancial risk (NFR), whether related to compliance failures, misconduct, technology, or operational challenges, has only a downside. And the downside is large.
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What is the difference between financial risks and non-financial risks?
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Oct 28, 2023 · Specifically, systemic banks with a high level of board independence, a long tenure shared by the chairman and CEO, and a large age gap between the two executives are associated with lower risk-taking than non-systemic banks with the opposite corporate governance characteristics.
