The 1988 Basle regulations are meant to synchronise banking regulations worldwide and add to the stability of the global banking system. Basle II, due to be released in 2006, addresses some of the flaws in the 1988 accord. However, both versions do not close a loophole for managing earnings...

Purpose – The purpose of this paper is to investigate how several key risk factors, including capital-to-asset ratio (CAR), franchise value and lobbying, affect various measures of risk in the US banking industry before, during and after the financial crisis. The empirical analysis covers the...

Purpose – This paper aims to investigate the interaction between capital requirements and pricing constraints as measures for insurance regulation. Design/methodology/approach – In a theoretical model framework, the author derives the insurer’s shareholder-value-maximizing response to...

Purpose The purpose of this paper is to study how the discretization interval affects the solvency measurement of a property-liability insurance company. Design/methodology/approach Starting with a basic solvency model, the authors study the impact of the discretization interval on risk...

Purpose – The purpose of this paper is to discuss and then analyze the interdependency between bank and sovereign risk before, during and after the financial crisis. Design/methodology/approach – The authors' approach is based upon an examination of 44 large banks headquartered in 13...

This paper presents the findings of a survey of UK banks and building societies undertaken to understand management’s reasons behind their decisions about capital. The survey shows that: (a) firms use different approaches to form their views about “desired” capital; (b) the main factors...

Purpose The purpose of this paper is to analyse the relationship between operational risk management (ORM), size, and ownership of Indian banks. This is important in the context of financial crisis experienced by developed countries due to lax regulation. Design/methodology/approach ORM...

New data are presented for a large number of countries on how frequently former high-ranking politicians become bank directors. Politician-banker connections at this level are relatively rare, but their frequency is robustly correlated with many important characteristics of banks and...

Economists seeking explanations for the global financial crisis of 1997-99 are reaching consensus that a major factor was weak financial institutions, which resulted in part from inadequate government regulations. At the same time many developing countries are struggling with an overregulated...

Abstract Robo-advisors in China improved rapidly at beginning due to low market access standards and limited financial regulations. Since 2016, regulators worked out with various measures to promote the industry. However, statistics proved robo-advisory industry in China turned out to be less...