Organisational culture and bank risk

Joel Suss (), David Bholat, Alex Gillespie () and Tom Reader ()
Additional contact information
Joel Suss: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH
Alex Gillespie: London School of Economics and Political Science
Tom Reader: London School of Economics and Political Science

No 912, Bank of England working papers from Bank of England

Abstract: Existing research has largely relied on employee surveys to measure organisational culture despite the significant shortcomings of this approach. We use multiple, unobtrusive sources of data to gain rich insights into bank culture without ever having to ask employees to ‘show us your culture’. Our measure is based on 20 individual indicators from six different sources, including information on internal fraud cases, customer complaints, and the quality of regulatory submissions. We use this data to investigate the hypothesised relationship between organisational culture and bank risk. We find robust evidence that poor culture leads to substantially higher risk, demonstrating the importance of bank culture for prudential outcomes.

Keywords: Culture; bank risk; supervision (search for similar items in EconPapers)
JEL-codes: G21 G30 L25 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2021-03-05
New Economics Papers: this item is included in nep-rmg and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bankofengland.co.uk/-/media/boe/files/ ... re-and-bank-risk.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:0912

Access Statistics for this paper

More papers in Bank of England working papers from Bank of England Bank of England, Threadneedle Street, London, EC2R 8AH. Contact information at EDIRC.
Bibliographic data for series maintained by Digital Media Team ().