We examine, in this paper, whether or not subprime mortgage crisis-related write-downs are mainly due to banks involvement in credit risk transfer market (CRT). Using data from 288 European banks over the period 2004-2007, we find that, for different types of CRT involvement, different patterns...

Purpose – This paper aims to examine the influence of risk management (RM) practices on the credit risk of significantly supervised European banks.Design/methodology/approach – To avoid regulatory and reporting discrepancies, this paper samples banks that come under the direct supervision of...