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This study examines the exposure of microfinance institutions to liquidity, interest rate and foreign exchange (FX) risk. It builds on a manually collected set of data on FX positions and the maturity structure of assets and liabilities of the largest microfinance institutions worldwide. The...
Persistent link: https://www.econbiz.de/10011344326
This study examines the exposure of microfinance institutions to liquidity-, interest rate and foreign exchange (FX) risk. Using manually collected data from microfinance institutions' financial reporting, I find that the microfinance sector faces minimal liquidity risk, high interest rate risk...
Persistent link: https://www.econbiz.de/10011779562
The perceptions of Islamic banking professionals are surveyed through a questionnaire to explore whether the process of risk management mediates board involvement in risk management and risk management practices of Islamic banks in Malaysia and Egypt. The findings of this study identified that...
Persistent link: https://www.econbiz.de/10013078950
In a setting where private information goes public for the first time, we study the real effects of the Basel II Accord requiring banks to calculate operational risk capital, and disclose qualitative and quantitative information. Using a difference-in-differences setup featuring partial US...
Persistent link: https://www.econbiz.de/10012418359
We examine whether bankers face disciplining consequences for structuring poorly performing corporate loans. We construct a novel dataset containing the employment histories and loan portfolios of a large sample of corporate bankers and find that corporate credit events (i.e., downgrades,...
Persistent link: https://www.econbiz.de/10012855001
Should bank managers be liable for taking excessive risks? The paper cautions that manager liability has very little … consequence, managers face considerable uncertainty on the applicable standard of care and hence on how they can avoid liability …. Second, exposing managers to uncertain liability is inconsistent with their role as agents (corporate organs). Banks will …
Persistent link: https://www.econbiz.de/10013051602
Persistent link: https://www.econbiz.de/10010414764
efficiency of the financial system, measured by the level of monitoring costs, affects the extent of risk sharing within an …
Persistent link: https://www.econbiz.de/10001622437
This paper studies the effects of hedge disclosure requirements on corporate risk management and product market competition. The analysis is based on a model of market entry and shows that to prevent entry incumbent firms engage in risk management when these activities remain unobserved by...
Persistent link: https://www.econbiz.de/10012968581
Kenneth Arrow and Karl Borch published several important articles in the early 1960s that can be viewed as the beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical contributions in insurance economics since that time. The review...
Persistent link: https://www.econbiz.de/10014025527