الفهرس | Only 14 pages are availabe for public view |
Abstract The aim of this study is to examine the impact of banks’ risk governance (RG) on Egyptian listed banks’ performance and capital requirements as prescribed in Basel regulations. Secondary data from annual reports of all twelve banks listed on the Egyptian Stock Market (EGX) over a period of eleven years (2010-2020) are analyzed using dynamic Ordinary Least Squares method; where the risk governance is presented by the proxy of the presence of Chief Risk Officer (CRO), risk committee, and audit committee characteristics. The results support the role of banks’ risk governance in improving banks’ both market-based and accounting-based performance. These findings support the importance of having an independent risk committee and a powerful Chief Risk Officer (CRO), because they can regulate banks’ increasing risk and acquire the advantages of capital requirements by investing assets in more profitable ways with low risk. This study is one of the few empirical attempts in emerging economics to link bank risk governance, risk-taking behavior, performance, and capital adequacy ratio as defined by Basel III. |