Risk-taking by banks: Evidence from European Union countries

Maria Teresa Garcia () and Ana Jin Ye

No 2022/0225, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa

Abstract: The aim of this paper is to study the relation between banks’ ownership structure and their risk-taking behavior. Additionally, we examine the impact of banking regulation on banks’ approach to taking risk. The empirical analysis considers a sample of listed banks from EU countries over the period of 2011 to 2016. We found that the structure of the board of directors can influence bank risk behavior but not the ownership concentration. No significant relation was found between the influence of the regulatory environment and bank risk, i.e., stricter regulation has no effect on risk taking by banks.

Keywords: Banks; Risk; Corporate governance; Regulation; EU countries. (search for similar items in EconPapers)
JEL-codes: G21 G32 G34 G38 (search for similar items in EconPapers)
Date: 2022-04
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-fdg, nep-ore and nep-rmg
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Journal Article: Risk-taking by banks: evidence from European Union countries (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:remwps:wp02252022

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