switching to IRB, banks' risk-weighted asset (RWA) densities are thus expected to diverge, especially across countries with … different supervisory strictness and risk levels. However, when examining 52 listed banks headquartered in 14 European countries … convergence can be entirely explained by differences in the size of the banks, loss levels, country risk, and/or time of IRB …

The novel partial-use philosophy by the Basel Committee on Banking Supervision initiates a paradigm shift for banks … across the overall bank anymore. This raises the questions of how banks roll out the IRBA and what the consequences of … partial use may be. We reveal that banks with little rollout progress over time can keep annual cost growth comparatively low …

This paper investigates the factors influencing banks' decision to engage in advanced risk management, from both a … theoretical and an empirical perspective. In recent decades, credit risk management in banks has become highly sophisticated and … banks have become more active and advanced in the management of credit risks. We identify two driving factors for risk …