Failures of banks' governance and risk management functions have been identified as key causes of the 2007 … and risk management functions as well as their impact on banks' risk-taking and performance. I first discuss risk … that conventional governance structures alone may be unable to restrain risk-taking in banks and thus the presence of a …

Attributing ratings to the top-20 owners, we construct a Risk-Weighted Ownership index (RWO) to measure the … profitability and risk-taking behaviour of the ownership structure at banks. Collecting data from 19 European countries plus the UK … performance and risk, at both an accounting and a market-based level. Overall, these results suggest that not only markets and …

organizations fail, the effect of complexity on BHCs' broader risk profiles is less well understood. Business, organizational, and … geographic complexity can engender explicit trade-offs between the agency problems that increase risk and the diversification …, liquidity management, and synergy improvements that reduce risk. The outcomes of such trade-offs may depend on bank governance …

This paper sets out the criteria that boards and supervisors should use to determine whether banks are governing risk … correctly. First, boards have to set an overall risk target consistent with the overall return target. Second, the bank …'s business model has to set a risk capacity and risk appetite that can enable the bank to meet its target for risk and return …

This paper analyzes the influence a bank's corporate governance structure has on its risk taking. To do so, the paper … specifically looks at illiquidity and insolvency risk, as measured by a bank's liquidity creation and its margin between interest … ownership and control increase their liquidity risk in times of narrowing or inverted yield curve structures to keep profit …

This paper investigates the impact of governance and regulation on systemic risk across a sample of banks from 10 … Emerging CEE countries during 2005-2012. Overall, our results show that tight internal risk management mechanisms and … shareholder-friendly supervisory boards are associated with higher contribution of banks to systemic risk. Additionally, external …

corporate governance and regulations on bank risk-taking behaviour. We found sufficient evidence that corporate governance … mechanism has strong effect on the level of risk taken by bank: bank with large owner(s) is associated with higher risk …-taking, while board size is found to be negatively related to bank risk level, indicating that the bigger the size of the board, the …

possibility that confusion and overlap between the roles of CEO and Chairman have important effects on bank risk and return. Using … a new data set for UK banks over the period 2003-2012 and controlling for risk-return simultaneity we find that having a … Joint CEO-Chairman lowers risk because it alleviates confusion between roles. We also document that oversight by a …

shareholders, without exacerbating risk. We find that the inclusion of such minority directors does indeed increase the … effectiveness of bank boards as it results in higher market valuations without increasing risk. Our results depend crucially on …