Jump to ContentJump to Main Navigation
Microeconometrics of BankingMethods, Applications, and Results$
Users without a subscription are not able to see the full content.

Hans Degryse, Moshe Kim, and Steven Ongena

Print publication date: 2009

Print ISBN-13: 9780195340471

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195340471.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see www.oxfordscholarship.com/page/privacy-policy).date: 12 December 2018

Managing Risks in the Banking Firm

Managing Risks in the Banking Firm

(p.164) 8 Managing Risks in the Banking Firm
Microeconometrics of Banking

Hans Degryse

Moshe Kim

Steven Ongena

Oxford University Press

This chapter discusses the empirical management of risks in the banking firm. In terms of methodology, it broaches the assumptions, estimation approaches, and issues of the value at risk and credit-risk measurement models. It also discusses evidence on default or credit risk, liquidity risk, and market risk. Banks should keep sufficient capital as a buffer against unexpected losses. This capital management reflects both economic capital (what banks would voluntarily hold) and regulatory capital (as required by regulators). Financial institutions decide on their on-balance- and off-balance-sheet activities. The off-balance-sheet management is also important for banks as often assets and liabilities are contingent, implying that many risks are not visible on the books but are latently present off the books.

Keywords:   banking firm, credit risk, liquidity risk, market risk, capital management

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .