Banks' fundamental concept relies on public trust. Since banks are also called the fiduciary financial institutions, public trust plays as an important role in the banking industry. This is mainly due to the fact that banks do not actually manage their own money. Instead, banks manage public...

The main objective of this research is to analyse the relationship between the board of director' structure of the banks from the Romanian bank sector, the capital demands and the risk management in what concerns these relationships. Regarding the structure of the board of directors, their size...

This paper is devoted to risk management and risk measurement methods. The author considers methods of risk measurement and proposes the Inte- gral Sum of Differential Weighted Indexes of Risks (or ISDWIR) method of risk measurement. The method is based on dynamic enterprise risk matri- ces. The...

The article describes the use of a Value at Risk measure to analyze the effectiveness of a bank. Among various existing possibilities of using this measure, the use of a new method has been proposed, namely, correcting various indicators of bank interest margins by using the Value at Risk...

This paper has a double aim, to give a theoretical evaluation of the disclosure model chosen by IASB referring to market risks of financial instruments and to analyze the practical solutions adopted in the case of a sample of listed banks and compliance of the information referring to risk in...

We show that a pattern of earnings management in bank financial statements has little bearing on downside risk during quiet periods, but seems to have a big impact during a financial crisis. More aggressive earnings managers prior to 2007 exhibit substantially higher risk once the financial...

Commercial banker-directors (CBDs) bring both financial expertise in risk management and conflicts of interest between shareholders and debtholders. The burgeoning literature on stock price crash risk generates important questions of whether CBDs reduce crash risk. Using BoardEx data from 1999...

We show that the information on derivatives usage and securitization activities of U.S. banks as disclosed in their pre-crisis 10-K filings predicts their systemic equity risk during the financial crisis. Investors predominantly exited stocks of banks that had previously disclosed a more...

Assessing operational risk, particularly related to internal control, is increasingly important to business firms. This is especially the case for publicly-traded companies that are engaged in multinational operations, which involve additional complexity and risk. In the United States, for...

A challenge in enterprise risk measurement for diversified financial institutions is developing a coherent approach to aggregating different risk types. This has been motivated by rapid financial innovation, developments in supervisory standards (Basel 2) and recent financial turmoil. The main...