Template-Type: ReDIF-Article 1.0
Author-Name: Dániel Homolya
Author-Workplace-Name: Group Financial Risk Manager at MOL Group 
and Assistant Professor at the Department
of Economics of the Faculty of Law at Károli Gáspár University of the Reformed Church in Hungary
Author-Email: homolya.daniel@kre.hu


Title: Risk Management Approaches and Bank Size

Abstract: Relying on the database of the European Banking Authority (EBA), the article
analyses the relationship between firm size and the selected risk methodology
(credit, market and operational risk). Based on the analysis, larger institutions are
more inclined to apply more advanced approaches.1 While this is a favourable trend
from a systemic risk perspective, according to statistical tests (Wilcoxon test), there
is no evidence that the shift toward more advanced approaches was more intensive
in the period between 2008 and 2010 than between 2010 and 2013, even if banks’
attention presumably turned to other tasks in an effort to mitigate the consequences
of the economic and financial crisis and in consideration of the significant regulatory
changes.

Classification-JEL: G21, G32
Keywords: risk management, banking sector, capital requirement calculation
methods

Journal: Financial and Economic Review  
Pages: 114–128
Volume: 15
Issue: 2
Year: 2016
File-URL: http://english.hitelintezetiszemle.hu/letoltes/daniel-homolya-en.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:15:y:2016:i:2:p:114-128