This research in progress paper introduces a research initiative focusing on bank employee risk behaviour to mitigate IT operational risks in Austrian banks. The study focuses on the role of IT risk culture and internal controls in relation to employee risk behaviour and the effectiveness of different awareness building practices in banking companies in response to international banking regulat...

Recent attempts to repeal the Glass-Steagall Act, which would allow commercial banking to mix with investment banking, have again initiated debate over current regulation prohibiting the affiliation between banking and commerce. Although participants in that debate have put forward many arguments based on U.S. historical experience, international evidence, and research results, the debate remai...

Tissue banking (or biobanking), thought by many to be an essential form of medical research, has raised a number of ethical issues that highlight a need to understand the beliefs and values of tissue donors, including the motivations underlying consent or refusal to donate. Data from our qualitative study of the legal, social, and ethical issues surrounding tumor banking in New South Wales, Aus...

This paper investigates the role of banking supervision in controlling bank risk. Banking supervision is measured in terms of enforcement outputs (i.e., on-site audits and sanctions). Our results show an inverted U-shaped relationship between on-site audits and bank risk, while the relationship between sanctions and risk appears to be linear and negative. We also consider the combined effect of...

A controversial issue in the literature on banking regulation is whether there is contagion risk, or not. This paper derives a framework to test for contagion risk and applies it to a data set of monthly bank failures under the US National Banking System from 1880 till 1936. To capture the count nature of bank failure data, an autoregressive Poisson model is used. The empirical results indicate...

This paper examines the determinants of executive compensation in Chinese banking during 2005–2012. Using the fixed effects panel, 2SLS and dynamic GMM regressions, I find that there is no significant positive pay performance relation, and CEO power does not necessarily exhibit higher levels of executive compensation. However, I show that ownership structure (measured by ownership concentration...

We build a simple model of banking in the presence of macroeconomic shocks where the comparative roles of private and public monitors can be analyzed. This model provides endogenous justifications for prudential regulation (capital requirements) and emergency liquidity assistance by the Central Bank (lender of last resort). We show that market discipline can be helpful, but does not solve the f...

There is a substantial body of literature arguing that financial development (the growth of banking and financial intermediation) contributes to economic growth. This paper makes two contributions to this literature. First, drawing on the banking history literature, we use data on state bank-branching and deposit-insurance regulation as a source of plausibly exogenous variation in financial dev...

This article discusses the management process of operational risk in financial institutions. The authors summarize the difficulties associated with the applicability of traditional risk management means to operational risk and introduce the Near-Miss management concept as a potential tool for the banking industry. INTRODUCTION Over the last decades, both the banking industry and regulatory bodi...