In this paper, by means of econometric models, we investigate the relationship between risk governance and performance of the Eurozone’s Global Systemically Important Banks (G-SIBs), over the period 2014-2018. The results of the quantitative analysis show that the choice to appoint a Chief Risk Officer (CRO) can be useful to shrink the bank risk-taking. Furthermore, we find that the importance attributed by the bank to the CRO – in terms of membership of the board of directors and in terms of remuneration – is positively correlated to both profitability and bank risk-taking. In addition, the analysis shows that the activity carried out by the Risk committee can be helpful to break down the risks.

This paper explores the relationship between board director compensation and bank performance for the period 1999–2021, considering the US banking system. The literature in this area with reference to financial companies and banks is poorly developed and leads to mixed results. Furthermore, the studies have mainly focused on the remuneration of the chief executive officer (CEO), neglecting that of the board members (Minnick et al., 2011; Khumalo & Masenge, 2015; Iskandrani et al., 2018). The scientific analysis methodology adopted is based on the analysis of panel data. Firstly, the results of the data analysis make it possible to highlight the existence of a significant link between the remuneration policies adopted by banks concerning the corporate results obtained in terms of profitability. Secondly, the results show differences, in terms of impact on banking performance, between the remuneration of chief executive officers and the remuneration of directors. The results of this study can help banks identify best practices for bank management as well as provide useful insights to different categories of stakeholders, especially the bank regulators and supervisors

We try to answer the following research question: Is unconventional monetary policy (UMP) mediated by European banks’ liquidity and solvency ratios? Starting from micro-prudential tools (unconventional monetary policy), this paper focuses on the micro-prudential perspective and contributes in different ways to the existing literature. First, using supervisory reporting data from European banks (European Central Bank (ECB), Statistical Data Warehouse), provides insights into the UMP (in terms of long term refinancing operation (LTRO)) during the first phase of the COVID 19 pandemic. Second, it empirically investigates the impacts of the LTRO on the liquidity and solvency of European banks, during the Q32016‒Q22021 period. We argue that the impacts of UMP (in terms of LTRO) are strictly related to banks’ solvency and liquidity, thus favouring the stability of the banking system. These results suggest that authorities may want to monitor the bank’s capital ratio and the liquidity position of financial institutions, also to better understand the effects of unconventional monetary tools on lending volume. The topic of our paper is scarcely explored by similar studies; therefore, we believe that our work may fill this gap and significantly contribute to enriching the related empirical literature.

The scientific literature on banks’ corporate governance has considered multiple characteristics of the board of directors to try to understand its effects in terms of banking performance; however, there is a gap in the literature on the effects of the quality of education of board members on the banks’ performance. Indeed, there is no consensus in the literature that human capital resources can predict risk-taking or bank performance. This study seeks to reduce this gap by examining for the period 2000–2021 the impact of the quality of the education background of board members on the performance of a group of large US banks. The results of this empirical investigation may offer relevant policy implications. The Federal Reserve System may consider adopting stricter measures than those currently imposed to control the behavior of the bank’s board members and reduce agency problems

Due to the severity and persistence of the global financial crisis started in 2007, central banks all over the world have adopted Unconventional Monetary Policies (UMPs), including negative policy rates, longer-term refinancing operations and large-scale purchases of financial assets. In this study, by referring to a time-series regression analysis with Newey-West correction, we evaluate the impact of UMPs implemented by the Eurosystem over the period 2008-2019 on the stocks of euro area banks’ deposit from households and non-financial corporations. The analysis of the effects of UMPs on the stocks of banks’ deposit represents a particularly innovative aspect of this research, where most of the scientific literature focuses on deposit interest rates. Our results suggest that the UMPs conducted by the Eurosystem have had a significant positive impact on euro area bank deposits, with particular reference to the relationship between Longer-term refinancing operations and Household overnight deposits, as well as between Securities held for monetary policy purposes and deposits from Households (total deposits) and from Corporates (overnight deposits).