Published November 1, 2021 | Version v1
Publication Open

Risk governance and bank risk-taking behavior: Evidence from Asian banks

Creators

  • 1. COMSATS University Islamabad
  • 2. École Supérieure des Sciences Commerciales d'Angers
  • 3. University of Groningen
  • 4. Vietnam National University, Hanoi
  • 5. IPAG Business School

Description

We investigate how risk committee and Chief Risk Officer's characteristics affect the risk-taking behavior of Asian commercial banks in the aftermath of the global financial crisis. Using a sample of 1480 observations representing 185 banks from year 2010 to 2017, we find evidence of a negative and significant link between the risk governance mechanisms and risk-taking. This link is however more pronounced for privately-owned banks (POBs) than for state-owned banks (SOBs). Moreover, risk governance mechanisms positively influence the performance of POBs but have no impact on performance of SOBs. Overall, our results show the role of risk governance mechanisms in curbing excessive risk-taking and improving risk management effectiveness and performance of Asian banks, with some differences across the SOBs and POBs.

⚠️ This is an automatic machine translation with an accuracy of 90-95%

Translated Description (Arabic)

نحن نحقق في كيفية تأثير لجنة المخاطر وخصائص كبير مسؤولي المخاطر على سلوك المخاطرة للبنوك التجارية الآسيوية في أعقاب الأزمة المالية العالمية. باستخدام عينة من 1480 ملاحظة تمثل 185 بنكًا من عام 2010 إلى عام 2017، نجد دليلًا على وجود صلة سلبية وهامة بين آليات حوكمة المخاطر والمخاطرة. ومع ذلك، فإن هذا الرابط أكثر وضوحًا للبنوك المملوكة للقطاع الخاص (POBs) منه للبنوك المملوكة للدولة (SOBs). علاوة على ذلك، تؤثر آليات حوكمة المخاطر بشكل إيجابي على أداء نقاط البيع ولكن ليس لها أي تأثير على أداء نقاط البيع. بشكل عام، تُظهر نتائجنا دور آليات حوكمة المخاطر في الحد من الإفراط في المخاطرة وتحسين فعالية إدارة المخاطر وأداء البنوك الآسيوية، مع بعض الاختلافات بين الشركات الصغيرة والشركات الكبيرة.

Translated Description (English)

We investigate how the risk committee and Chief Risk Officer's characteristics affect the risk-taking behavior of Asian commercial banks in the aftermath of the global financial crisis. Using a sample of 1480 observations representing 185 banks from year 2010 to 2017, we find evidence of a negative and significant link between the risk governance mechanisms and risk-taking. However, this link is more pronounced for privately-owned banks (POBs) than for state-owned banks (SOBs). Furthermore, risk governance mechanisms positively influence the performance of POBs but have no impact on the performance of SOBs. Overall, our results show the role of risk governance mechanisms in curbing excessive risk-taking and improving risk management effectiveness and performance of Asian banks, with some differences across the SOBs and POBs.

Translated Description (French)

Nous étudions comment les caractéristiques du comité des risques et du directeur des risques affectent le comportement de prise de risque des banques commerciales asiatiques à la suite de la crise financière mondiale. En utilisant un échantillon de 1480 observations représentant 185 banques de 2010 à 2017, nous trouvons des preuves d'un lien négatif et significatif entre les mécanismes de gouvernance des risques et la prise de risque. Cependant, ce lien est plus prononcé pour les banques privées (POB) que pour les banques publiques (SOB). En outre, les mécanismes de gouvernance des risques influencent positivement la performance des POB mais n'ont aucun impact sur la performance des SOB. Dans l'ensemble, nos résultats montrent le rôle des mécanismes de gouvernance des risques dans la réduction de la prise de risque excessive et l'amélioration de l'efficacité et de la performance de la gestion des risques des banques asiatiques, avec quelques différences entre les SOB et les POB.

Translated Description (Spanish)

Investigamos cómo las características del comité de riesgos y del director de riesgos afectan el comportamiento de asunción de riesgos de los bancos comerciales asiáticos después de la crisis financiera mundial. Utilizando una muestra de 1480 observaciones que representan a 185 bancos desde el año 2010 hasta 2017, encontramos evidencia de un vínculo negativo y significativo entre los mecanismos de gobernanza del riesgo y la asunción de riesgos. Sin embargo, este vínculo es más pronunciado para los bancos de propiedad privada (POB) que para los bancos de propiedad estatal (SOB). Además, los mecanismos de gobernanza del riesgo influyen positivamente en el rendimiento de los POB, pero no tienen ningún impacto en el rendimiento de los SOB. En general, nuestros resultados muestran el papel de los mecanismos de gobernanza del riesgo para frenar la asunción excesiva de riesgos y mejorar la eficacia y el rendimiento de la gestión de riesgos de los bancos asiáticos, con algunas diferencias entre los SOB y los POB.

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Additional details

Additional titles

Translated title (Arabic)
حوكمة المخاطر وسلوك المخاطرة المصرفية: أدلة من البنوك الآسيوية
Translated title (English)
Risk governance and bank risk-taking behavior: Evidence from Asian banks
Translated title (French)
Gouvernance des risques et comportement de prise de risque bancaire : preuves des banques asiatiques
Translated title (Spanish)
Gobernanza del riesgo y comportamiento de asunción de riesgos bancarios: evidencia de bancos asiáticos

Identifiers

Other
https://openalex.org/W3214139719
DOI
10.1016/j.intfin.2021.101466

Is supplement to
https://openalex.org/W629343495 (Other)
https://openalex.org/W4386639311 (Other)
https://openalex.org/W4297999843 (Other)
https://openalex.org/W4297405066 (Other)
https://openalex.org/W2903805368 (Other)
https://openalex.org/W272821406 (Other)
https://openalex.org/W2558741911 (Other)
https://openalex.org/W2133617433 (Other)
https://openalex.org/W2098776621 (Other)
https://openalex.org/W2096900375 (Other)

GreSIS Basics Section

Is Global South Knowledge
Yes
Country
Vietnam

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