Risk Management Approaches and Bank Size

Dániel Homolya ()

Financial and Economic Review, 2016, vol. 15, issue 2, 114–128

Abstract: Relying on the database of the European Banking Authority (EBA), the article analyses the relationship between firm size and the selected risk methodology (credit, market and operational risk). Based on the analysis, larger institutions are more inclined to apply more advanced approaches.1 While this is a favourable trend from a systemic risk perspective, according to statistical tests (Wilcoxon test), there is no evidence that the shift toward more advanced approaches was more intensive in the period between 2008 and 2010 than between 2010 and 2013, even if banks’ attention presumably turned to other tasks in an effort to mitigate the consequences of the economic and financial crisis and in consideration of the significant regulatory changes.

Keywords: risk management; banking sector; capital requirement calculation methods (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:mnb:finrev:v:15:y:2016:i:2:p:114-128

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