Risk governance and bank risk-taking behavior: Evidence from Asian banks

We investigate how risk committee and Chief Risk Officer’s characteristics affect the risk-taking behavior of Asian commercial banks in aftermath global financial crisis. Using a sample 1480 observations representing 185 from year 2010 to 2017, we find evidence negative significant link between governance mechanisms risk-taking. This is however more pronounced for privately-owned (POBs) than state-owned (SOBs). Moreover, positively influence performance POBs but have no impact on SOBs. Overall, our results show role curbing excessive improving management effectiveness banks, with some differences across SOBs POBs.