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Risk Governance and Performance: Evidence From Eurozone¡¯s Large Banks

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  • Paolo Agnese
  • Paolo Capuano

Abstract

In this paper, by means of econometric models, we investigate the relationship between risk governance and performance of the Eurozone¡¯s Global Systemically Important Banks (G-SIBs), over the period 2014-2018. The results of the quantitative analysis show that the choice to appoint a Chief Risk Officer (CRO) can be useful to shrink the bank risk-taking. Furthermore, we find that the importance attributed by the bank to the CRO ¨C in terms of membership of the executive committee and in terms of remuneration ¨C is positively correlated to both profitability and bank risk-taking. In addition, the analysis shows that the activity carried out by the Risk committee can be helpful to break down the risks.

Suggested Citation

  • Paolo Agnese & Paolo Capuano, 2020. "Risk Governance and Performance: Evidence From Eurozone¡¯s Large Banks," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 28-41, October.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:5:p:28-41
    DOI: 10.5430/ijfr.v11n5p28
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    References listed on IDEAS

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