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Author: Allen N. Berger
Publisher:
ISBN:
Category :
Languages : en
Pages : 80
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Book Description
Little is known about how socioeconomic characteristics of executive teams affect corporate governance in banking. Exploiting a unique dataset, we show how age, gender, and education composition of executive teams affect risk taking of financial institutions. First, we establish that age, gender, and education jointly affect the variability of bank performance. Second, we use difference-in-difference estimations that focus exclusively on mandatory executive retirements and find that younger executive teams increase risk taking, as do board changes that result in a higher proportion of female executives. In contrast, if board changes increase the representation of executives holding Ph.D. degrees, risk taking declines.
Author: Allen N. Berger
Publisher:
ISBN:
Category :
Languages : en
Pages : 80
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Book Description
Little is known about how socioeconomic characteristics of executive teams affect corporate governance in banking. Exploiting a unique dataset, we show how age, gender, and education composition of executive teams affect risk taking of financial institutions. First, we establish that age, gender, and education jointly affect the variability of bank performance. Second, we use difference-in-difference estimations that focus exclusively on mandatory executive retirements and find that younger executive teams increase risk taking, as do board changes that result in a higher proportion of female executives. In contrast, if board changes increase the representation of executives holding Ph.D. degrees, risk taking declines.
Author: Lai T. Hoang
Publisher:
ISBN:
Category :
Languages : en
Pages : 22
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Book Description
Although risk management in banking sector has attracted tremendous concern of both academics and practitioners, surprisingly little attention was paid on the relationship between demographic characteristics of board members and banks' risk-taking behavior, especially in developing countries. Exploiting the dataset of Vietnamese banks from 2009 to 2016, we found that the introduction of female or foreign board members is likely to reduce banks' risk taking. However, increasing the percentage of female or foreign board members has no marginal effect on the risk-taking behavior of banks which already had such board members. Further, board age has a positive relationship but board size shows a negative one with banks' risk taking. Additionally, bank size and foreign ownership are found to be important determinants of banks' risk-taking behavior in the context of Vietnam, i.e. banks with lower proportion of foreign ownership and larger banks tend to involve in more risky activities.
Author:
Publisher: Lulu.com
ISBN: 9291316695
Category : Bank capital
Languages : en
Pages : 294
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Book Description
Author: Hennie van Greuning
Publisher: World Bank Publications
ISBN: 0821378988
Category : Business & Economics
Languages : en
Pages : 442
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Book Description
This book provides a comprehensive overview of topics focusing on assessment, analysis, and management of financial risks in banking. The publication emphasizes risk-management principles and stresses that key players in the corporate governance process are accountable for managing the different dimensions of financial risk. This third edition remains faithful to the objectives of the original publication. A significant new edition is the inclusion of chapters on the management of the treasury function. Advances made by the Basel Committee on Banking Supervision are reflected in the chapters on capital adequacy, transparency, and banking supervision. This publication should be of interest to a wide body of users of bank financial data. The target audience includes persons responsible for the analysis of banks and for the senior management or organizations directing their efforts.
Author: Mr.Gianni De Nicolo
Publisher: International Monetary Fund
ISBN: 1451853815
Category : Business & Economics
Languages : en
Pages : 25
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Book Description
This study reinvestigates the theoretical relationship between competition in banking and banks' exposure to risk of failure. There is a large existing literature that concludes that when banks are confronted with increased competition, they rationally choose more risky portfolios. We briefly review this literature and argue that it has had a significant influence on regulators and central bankers, causing them to take a less favorable view of competition and encouraging anti-competitive consolidation as a response to banking instability. We then show that existing theoretical analyses of this topic are fragile, since they do not detect two fundamental risk-incentive mechanisms that operate in exactly the opposite direction, causing banks to aquire more risk per portfolios as their markets become more concentrated. We argue that these mechanisms should be essential ingredients of models of bank competition.
Author: Gerard Caprio
Publisher: World Bank Publications
ISBN:
Category : Bancos
Languages : en
Pages : 49
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Book Description
"Which public policies and ownership structures enhance the governance of banks? This paper constructs a new database on the ownership of banks internationally and then assesses the ramifications of ownership, shareholder protection laws, and supervisory/regulatory policies on bank valuations. Except in a few countries with very strong shareholder protection laws, banks are not widely held, but rather families or the State tend to control banks. We find that (i) larger cash flow rights by the controlling owner boosts valuations, (ii) stronger shareholder protection laws increase valuations, and (iii) greater cash flow rights mitigate the adverse effects of weak shareholder protection laws on bank valuations. These results are consistent with the views that expropriation of minority shareholders is important internationally, that laws can restrain this expropriation, and concentrated cash flow rights represent an important mechanism for governing banks. Finally, the evidence does not support the view that empowering official supervisory and regulatory agencies will increase the market valuation of banks"--NBER website
Author: Catarina Fernandes
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
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Book Description
The global financial crisis has led to an increasingly focused attention on excessive bank risk-taking. One of the consequences is that the role of internal governance mechanisms (such as the board of directors) in monitoring risk has come under greater scrutiny.In this paper we examine the impact of board structure, ownership structure, risk governance mechanisms and other bank-specific factors on bank risk-taking for a sample of 72 publicly listed European banks. Using a simultaneous equations approach, our main findings indicate that the proportion of independent directors, board size and Chief Executive Officer (CEO) power (or CEO authority) negatively affect bank risk-taking during the financial crisis. On the contrary, institutional shareholders positively influence bank risk-taking and both the existence of a risk committee and a Chief Risk Officer (CRO) who is a member of the board have no significant impact. The results remain unchanged when applying both three-stage least squares (3SLS) and the two-stage least squares (2SLS) estimation methods as well as when all variables are winsorised.Additionally, we extend our analysis for the period before the financial crisis (proxy for “stable” periods) to test whether the impact of governance mechanisms and other determinants of risk-taking depend on environmental conditions and we conclude that it is indeed sensitive to the economic context. In fact, we find that some of governance mechanisms are relevant in crisis conditions but not in non-crisis conditions and thus, their impact depends on macroeconomic conditions.
Author: Asl? Demirgüç-Kunt
Publisher: World Bank Publications
ISBN:
Category : Asset Portfolio
Languages : en
Pages : 42
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Book Description
"Explicit deposit insurance tends to be detrimental to bank stability-- the more so where bank interest rates are deregulated and the institutional environment is weak"--Cover.
Author: Mr.Luc Laeven
Publisher: International Monetary Fund
ISBN: 1484363728
Category : Business & Economics
Languages : en
Pages : 34
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Book Description
The proposed SDN documents the evolution of bank size and activities over the past 20 years. It discusses whether this evolution can be explained by economies of scale or “too big to fail” subsidies. The paper then presents evidence on the extent to which bank size and market-based activities contribute to systemic risk. The paper concludes with policy messages in the area of capital regulation and activity restrictions to reduce the systemic risk posed by large banks. The analysis of the paper complements earlier Fund work, including SDN 13/04 and the recent GFSR chapter on “too big to fail” subsidies, and its policy message is in line with this earlier work.
Author: Andrea Sironi
Publisher: John Wiley & Sons
ISBN: 0470029781
Category : Business & Economics
Languages : en
Pages : 820
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Book Description
This book presents an integrated framework for risk measurement, capital management and value creation in banks. Moving from the measurement of the risks facing a bank, it defines criteria and rules to support a corporate policy aimed at maximizing shareholders' value. Parts I - IV discuss different risk types (including interest rate, market, credit and operational risk) and how to assess the amount of capital they absorb by means of up-to-date, robust risk-measurement models. Part V surveys regulatory capital requirements: a special emphasis is given to the Basel II accord, discussing its economic foundations and managerial implications. Part VI presents models and techniques to calibrate the amount of economic capital at risk needed by the bank, to fine-tune its composition, to allocate it to risk-taking units, to estimate the "fair" return expected by shareholders, to monitor the value creation process. Risk Management and Shareholders' Value in Banking includes: * Value at Risk, Monte Carlo models, Creditrisk+, Creditmetrics and much more * formulae for risk-adjusted loan pricing and risk-adjusted performance measurement * extensive, hands-on Excel examples are provided on the companion website www.wiley.com/go/rmsv * a complete, up-to-date introduction to Basel II * focus on capital allocation, Raroc, EVA, cost of capital and other value-creation metrics
