This paper investigates to what extent risk management and corporate governance mitigate the involvement of banks in credit boom and bust cycles. Using a unique, handcollected dataset on 156 banks from Central and Eastern Europe during 2005-2012, we assess whether banks with stronger risk...

Contingent Convertibles (CoCos) represent debt that is subject to being converted automatically into common equity under pre-specified terms of conversion if the chosen regulatory capital ratio falls to a level triggering conversion. CoCos are that subspecies of contingent capital that...

<i>Recent Advances in Financial Engineering 2012</i> is the Proceedings of the International Workshop on Finance 2012, which was held at the University of Tokyo on October 30 and 31, 2012. This workshop was organized by the Center for Advanced Research in Finance (CARF), Graduate School of Economics,...

Each financial crisis calls for ¡ª by its novelty and the mechanisms it shares with preceding crises ¡ª appropriate means to analyze financial risks. In <em>Extreme Financial Risks and Asset Allocation</em>, the authors present in an accessible and timely manner the concepts, methods, and techniques...

A company’s manager has to create and maintain a healthy internal control system. An efficient internal control system implies the implementation in the company of risk management. Each company, but also each individual, who tries to attain certain objectives, establishes the activities which...

The recent financial crisis has highlighted the criticality of the prudential supervision based on minimum capital requirements. Financial institutions do not seem to measure and manage risk in financial markets adequately. Criticism of the present model of Basel 2 have led the Committee to...

The paper explores reputation and reputational risk in banks starting from a review of the literature concerning both financial and non financial institutions. Methodologies aimed at estimating risk and their implementation in risk management policies are also discussed. The paper examines...

The paper analyses the issue of capital management in an international banking group with regards to the new capital adequacy regulation that will be introduced. The banking system has been severely hit by the current financial crisis and the perspectives look rather challenging, although in...

Basel II Framework brings important changes, since life insurance and surety policy are «eligible» guarantees for Credit Risk Mitigation. Nevertheless, banks could offer a better pricing to borrowers not because they are less risky, but because the whole operation would need a lower capital...

The paper discusses a number of risk management issues of the Islamic financial industry. It outlines the risk management processes and techniques that enable financial institutions to control undesirable risks and to take benefit of the business opportunities created by the desirable ones.