Market Risk Disclosure in Banks’ Balance Sheets and the Pillar 3 Report: The Case of Italian Banks

Enzo Scannella ()
Additional contact information
Enzo Scannella: University of Palermo

Chapter Chapter 4 in Contemporary Issues in Banking, 2018, pp 53-90 from Palgrave Macmillan

Abstract: Abstract Market risk has taken on growing importance in banking in recent years. Risk disclosure has strategic importance for the efficiency of financial markets and overall financial stability. It plays a pivotal role in strengthening market discipline and building trust in stakeholder relationships. The aim of this chapter is to investigate market risk disclosure in banking. The author employs content analysis to conduct an empirical study on a sample of the ten largest Italian banks. The study provides evidence that banks differ in their market risk reporting, even though they are subject to similar regulatory requirements and accounting standards. It also shows that there is room to improve various aspects of risk disclosure and provides some useful insights for further research. The structure of this chapter is as follows. Section 1 introduces market risk disclosure in banking. Section 2 provides the theoretical foundations of risk disclosure. Section 3 analyses the specific nature of market risk and provides a regulatory and accounting perspective. Section 4 presents a hybrid scoring model based on analytical grids of risk disclosure parameters to assess market risk disclosure. Section 5 analyses and discusses the main research findings, as well as the potential implications, while Sect. 6 presents the conclusions drawn.

Keywords: Market risk; Banking risks; Risk reporting; Risk disclosure; Banking; Financial regulation; Risk management (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:pmschp:978-3-319-90294-4_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9783319902944

DOI: 10.1007/978-3-319-90294-4_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().