Impact of risk oversight functions on bank risk: Evidence from the Dodd-Frank Act

Lakshmi Balasubramanyan, Naveen D. Daniel, Joseph G Haubrich and Lalitha Naveen

Journal of Banking & Finance, 2024, vol. 158, issue C

Abstract: We document the impact of having a risk committee (RC) and a chief risk officer (CRO) on bank risk using the passage of the Dodd Frank Act as a natural experiment. The Act requires bank holding companies with over $10B of assets to have an RC to oversee risk management, while those with over $50B of assets are additionally required to have a CRO. We use difference-in-difference and regression discontinuity approaches to estimate the change in risk following RC and CRO adoption. Overall, we find no evidence that the RC or CRO have a causal impact on bank risk.

Keywords: Bank holding companies; Risk; Chief risk officer; Risk committee; Dodd Frank Act; Bank risk; Corporate governance (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378426623002352
Full text for ScienceDirect subscribers only

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:eee:jbfina:v:158:y:2024:i:c:s0378426623002352

DOI: 10.1016/j.jbankfin.2023.107049

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().