Stronger Risk Controls, Lower Risk PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Stronger Risk Controls, Lower Risk PDF full book. Access full book title Stronger Risk Controls, Lower Risk by Andrew Ellul. Download full books in PDF and EPUB format.

Stronger Risk Controls, Lower Risk

Stronger Risk Controls, Lower Risk PDF Author: Andrew Ellul
Publisher:
ISBN:
Category :
Languages : en
Pages : 70

Get Book Here

Book Description
We construct a Risk Management Index (RMI) to measure the strength and independence of the risk management function at bank holding companies (BHCs). U.S. BHCs with higher RMI before the onset of the financial crisis have lower tail risk, lower non-performing loans, and better operating and stock return performance during the financial crisis years. Over the period 1995 to 2010, BHCs with a higher lagged RMI have lower tail risk and higher return on assets, all else equal. Overall, these results suggest that a strong and independent risk management function can curtail tail risk exposures at banks.