Corporate governance and bank risk in asean countries

Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.Corporate governance and bank risk in Asean countries.

MINISTRY OF EDUCATION AND TRAINING OF VIETNAM UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYỄN QUANG KHẢI CORPORATE GOVERNANCE AND BANK RISK IN ASEAN COUNTRIES PHD THESIS HO CHI MINH CITY-2022 MINISTRY OF EDUCATION AND TRAINING OF VIETNAM UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYỄN QUANG KHẢI CORPORATE GOVERNANCE AND BANK RISK IN ASEAN COUNTRIES SPECIALIZATION: FINANCE AND BANKING CODE: 9340201 PHD THESIS SUPERVISORS: LÊ HỒ AN CHÂU, Ph.D PHẠM PHÚ QUỐC, Ph.D HO CHI MINH CITY-2022 STATEMENT OF AUTHORSHIP My name is Nguyen Quang Khai, PhD student in the major of Banking at University of Economics Ho Chi Minh City (UEH) I declare that “this thesis is my own work, and except where due reference is made, contains no material previously written or published by any other people I ensure that this thesis has not been, and will not be, submitted in whole or in part to any ther educational institution for the award of any other degree.” Ho Chi Minh City, 2022 Nguyen Quang Khai ACKNOWLEDGMENTS First, I would like to thank my academic advisers Dr Le Ho An Chau and Dr Pham Phu Quoc for their enthusiastic help, instruction, intensive support, care, and advice on my research They have granted me the autonomy to conduct and publish my research while continuing to review and provide me with exhaustive valuable feedback and encouragement Second, I would like to sincerely thank the School of Banking and the UEH university for providing me with the best study and research environment I would also like to thank my professors, the journal’s editor, and the independent external reviewers for giving me numerous useful comments on my research All their comments helped me improve and complete my thesis Lastly, I am extremely grateful to my family for their love, support, and sacrifice, as well as to my friends and colleagues who have encouraged and supported me very much during the learning process, work, and completion of this thesis Ho Chi Minh City, 2022 Nguyen Quang Khai TABLE OF CONTENTS STATEMENT OF AUTHORSHIP .iii ACKNOWLEDGMENTS iv TABLE OF CONTENTS .v ABBREVIATIONS x LIST OF TABLES .xi LIST OF FIGURES xii ABSTRACT xiii TÓM TẮT xv CHAPTER 1: INTRODUCTION 1.1 Introduction 1.2 Background and Motivation .2 1.2.1 Corporate governance and bank risk in ASEAN 1.2.2 Background of literature on corporate governance and bank risk .6 1.3 Research Objectives and Questions 16 1.4 Data and Research Design 18 1.5 Scope of Research 19 1.6 Contribution of the Thesis 19 1.7 Structure of the Thesis 21 CHAPTER 2: THEORY AND LITERATURE REVIEW 23 2.1 Introduction 23 2.2 Bank Risk and Risk Governance Structure 24 2.2.1 Bank risks 24 2.2.1.1 Risk and different types of risk within the banking sector 24 2.2.1.2 Bank risk-taking 26 2.2.1.3 Bank risk management effectiveness 26 2.2.2 Corporate governance and bank risk governance 28 2.2.2.1 Board of directors 30 2.2.2.2 Audit committee and external audit 31 2.2.2.3 Stand-alone risk committee 32 2.3 Bank Risk Governance Structure Theory and Evidence 33 2.3.1 Scope of operation theory 34 2.3.2 Monitoring theory 35 2.3.3 Negotiation theory 37 2.3.4 Hypothesis related to RQ1 39 2.3.4.1 Risk governance structure and bank scope of operation .40 2.3.4.2 Risk governance structure and the trade-off between monitoring cost and benefit 41 2.3.4.3 Risk governance structure and CEO’s negotiation power 43 2.4 Bank Risk-Taking Theory and Evidence 45 2.4.1 Moral hazard theory 46 2.4.2 Agency theory 50 2.4.3 Stakeholder theory 52 2.4.4 Institutional theory 53 2.4.5 Hypothesis related to RQ2 55 2.4.5.1 Risk governance structure and risk taking 55 2.4.5.2 Risk governance effectiveness and bank risk-taking 59 2.4.5.3 Institutional quality and the risk oversight role of risk governance 59 2.5 Bank Risk Management Theory and Evidence 60 2.5.1 Option theory 61 2.5.2 Hypothesis related to RQ3 61 2.6 Chapter Summary 62 CHAPTER 3: RESEARCH METHODOLOGY .64 3.1 Introduction 64 3.2 Research Data 65 3.3 Methodology for Determinants of Bank Risk Governance Structure (related to RQ1) .66 3.3.1 Variable measures 67 3.3.1.1 Measures of bank risk governance structure .67 3.3.1.2 Measures of “scope of operation” .69 3.3.1.3 Measures of private benefits and monitoring costs .70 3.3.1.4 Measures of CEO’s negotiation power .71 3.3.1.5 Measures of other control variables 71 10 3.3.2 Empirical model and estimation methods .72 3.3.2.1 Empirical model 72 3.3.2.2 Estimation methods .76 3.4 Methodology for Relationship between Bank Risk Governance Structure and Risk-Taking (related to RQ2) 78 3.4.1 Variables measures 78 3.4.1.1 Measures of bank risk-taking 78 3.4.1.2 Measures of bank risk governance structure and its effectiveness 80 3.4.1.3 Measures of other control variables and interaction variables 84 3.4.2 Empirical model and estimation methods .87 3.4.2.1 Empirical model 87 3.4.2.2 Estimation methods .89 3.5 Methodology for the Relationship between Bank Risk Governance and Risk Management Effectiveness (related to RQ3) 90 3.5.1 Variable measures 90 3.5.1.1 Bank performance measures .90 3.5.1.2 Other variables 91 3.5.2 Empirical model and estimation method .93 3.5.2.1 Empirical model 93 3.5.2.2 Estimation methods .94 3.6 Chapter Summary 95 CHAPTER 4: EMPIRICAL RESULT AND DISCUSSION .97 4.1 Introduction 97 4.2 Descriptive Statistics and Correlation Matrix .97 4.2.1 Descriptive statistics 98 4.2.2 Correlation matrix 100 4.3 Determinants of Bank Risk Governance Structure: Empirical Results (RQ1) 103 4.3.1 Regression results for RQ1 104 4.3.1.1 Scope of operation and bank risk governance structure results 104 4.3.1.2 Trade-off between monitoring cost and benefit and risk governance structure results 105 4.3.1.3 CEO’s negotiation power and risk governance structure results .107 Appendix 13: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.15 by STATA 15 Appendix 14: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.16 by STATA 15 Appendix 15: Further Test for FE/RE Models A15a: VIF Value Variable BAGE BSIZE DIV FCAF CEOW CEOT CEOA ROA1 MER1 BOZ1 EAR VIF 1.73 1.42 2.06 2.19 1.13 1.32 1.68 1.1 1.12 1.79 1.12 1/VIF 0.578599 0.703836 0.484837 0.457526 0.887264 0.755339 0.59698 0.909849 0.890378 0.5581 0.889729 A15b: Testing Autocorrelation (Wooldridge test) A15c: Heteroskedasticity test - Wald test for ACS Modified Wald test for groupwise heteroskedasticity in fixed effect regression model H0: sigma(i)^2 = sigma^2 for all i chi2 (98) = 8.9e+05 Prob>chi2 = 0.0167 - Wald test for FAE Modified Wald test for groupwise heteroskedasticity in fixed effect regression model H0: sigma(i)^2 = sigma^2 for all i chi2 (98) = 5.8e+06 Prob>chi2 = - 0.0114 LM – Breusch and pagan Lagrangian Multiplier for ACI LM – Breusch and pagan Lagrangian Multiplier for AMF Appendix 16: Data of Institutional Quality Country Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Laos Laos Laos Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 Total -0.79 -0.85 -0.84 -0.90 -0.89 -0.83 -0.85 -0.87 -0.87 -0.82 -0.71 -0.74 -0.71 -0.73 -0.73 -0.75 -0.74 -0.78 -0.83 -0.91 -0.83 -0.74 -0.63 -0.52 -0.48 -0.48 -0.49 -0.45 -0.38 -0.34 -0.22 -0.29 -0.18 -0.17 -0.16 -0.17 -1.06 -1.31 -1.13 COC -1.01 -0.99 -1.06 -1.21 -1.25 -1.15 -1.23 -1.17 -1.24 -1.24 -1.07 -1.05 -1.14 -1.12 -1.27 -1.29 -1.31 -1.30 -1.14 -0.97 -0.93 -0.88 -0.84 -0.62 -0.59 -0.84 -0.75 -0.70 -0.64 -0.61 -0.56 -0.46 -0.40 -0.25 -0.24 -0.42 -1.15 -1.18 -1.24 GOE -0.81 -0.85 -0.89 -1.00 -0.97 -0.90 -0.99 -0.95 -0.94 -0.86 -0.82 -0.91 -0.69 -0.70 -0.69 -0.66 -0.65 -0.58 -0.41 -0.46 -0.42 -0.48 -0.33 -0.28 -0.24 -0.30 -0.21 -0.26 -0.27 -0.20 -0.04 -0.24 0.01 0.04 0.03 0.18 -0.91 -1.00 -1.00 PSAV -0.73 -0.65 -0.41 -0.40 -0.35 -0.36 -0.30 -0.56 -0.50 -0.30 -0.10 -0.14 0.02 0.06 0.21 0.17 0.15 -0.08 -1.58 -2.09 -1.91 -1.52 -1.42 -1.20 -1.06 -0.75 -0.85 -0.77 -0.59 -0.52 -0.42 -0.62 -0.37 -0.51 -0.49 -0.48 -0.10 -1.23 -0.61 RQ -0.31 -0.45 -0.51 -0.53 -0.61 -0.48 -0.45 -0.49 -0.48 -0.58 -0.34 -0.34 -0.42 -0.53 -0.47 -0.50 -0.53 -0.57 -0.64 -0.80 -0.70 -0.63 -0.38 -0.34 -0.35 -0.36 -0.42 -0.35 -0.28 -0.20 -0.11 -0.22 -0.12 -0.11 -0.11 -0.09 -1.30 -1.40 -1.29 RL -1.14 -1.25 -1.28 -1.23 -1.23 -1.14 -1.15 -1.12 -1.12 -1.05 -0.98 -1.00 -0.96 -0.98 -1.06 -1.06 -1.05 -0.94 -0.91 -0.85 -0.77 -0.82 -0.72 -0.68 -0.65 -0.60 -0.64 -0.59 -0.58 -0.53 -0.34 -0.42 -0.34 -0.35 -0.34 -0.34 -1.15 -1.27 -1.12 VA -0.74 -0.90 -0.87 -1.02 -0.93 -0.93 -0.97 -0.91 -0.93 -0.91 -0.96 -0.98 -1.11 -1.12 -1.11 -1.16 -1.18 -1.20 -0.27 -0.30 -0.26 -0.12 -0.08 -0.02 -0.01 0.00 -0.04 -0.01 0.07 0.04 0.15 0.18 0.17 0.13 0.12 0.16 -1.74 -1.78 -1.55 Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Philippines Philippines Philippines Philippines Philippines Philippines Philippines Philippines Philippines Philippines 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 -1.19 -1.07 -1.03 -0.96 -1.03 -1.00 -0.95 -0.86 -0.81 -0.68 -0.71 -0.68 -0.70 -0.70 -0.80 -1.64 -1.61 -1.73 -1.66 -1.65 -1.70 -1.70 -1.75 -1.74 -1.61 -1.38 -1.30 -1.19 -1.15 -0.83 -0.89 -0.86 -0.95 -0.30 -0.44 -0.57 -0.40 -0.55 -0.49 -0.55 -0.54 -0.54 -0.45 -1.30 -1.31 -1.27 -1.20 -1.24 -1.19 -1.18 -1.02 -0.93 -0.85 -0.91 -0.95 -0.94 -0.95 -1.06 -1.32 -1.48 -1.65 -1.54 -1.66 -1.63 -1.62 -1.66 -1.67 -1.59 -1.06 -1.00 -0.88 -0.84 -0.62 -0.56 -0.54 -0.63 -0.50 -0.58 -0.65 -0.62 -0.83 -0.72 -0.76 -0.77 -0.76 -0.67 -1.21 -0.98 -0.90 -0.88 -0.95 -0.86 -0.83 -0.84 -0.73 -0.42 -0.51 -0.37 -0.36 -0.35 -0.78 -1.31 -1.24 -1.56 -1.53 -1.45 -1.48 -1.53 -1.61 -1.62 -1.60 -1.48 -1.50 -1.28 -1.24 -0.98 -1.05 -1.04 -1.15 -0.13 -0.10 -0.24 -0.04 -0.13 0.07 0.02 -0.03 0.00 0.09 -0.49 -0.09 -0.18 0.02 -0.16 -0.28 -0.06 0.03 0.07 0.50 0.54 0.53 0.43 0.43 0.53 -1.41 -1.15 -0.99 -0.90 -0.85 -1.06 -1.09 -1.29 -1.29 -1.11 -0.94 -1.14 -1.09 -1.17 -0.80 -1.08 -1.08 -1.26 -0.86 -1.56 -1.71 -1.18 -1.64 -1.60 -1.78 -1.73 -1.65 -1.39 -1.33 -1.27 -1.18 -1.14 -1.07 -1.02 -0.98 -0.82 -0.84 -0.85 -0.81 -0.72 -0.72 -0.71 -0.71 -2.06 -2.00 -2.34 -2.12 -2.19 -2.27 -2.21 -2.24 -2.24 -2.10 -1.83 -1.49 -1.38 -1.22 -0.87 -0.83 -0.80 -0.76 -0.10 -0.05 -0.30 -0.18 -0.17 -0.12 -0.08 -0.11 -0.23 -0.23 -1.18 -1.02 -0.96 -0.87 -1.05 -0.98 -1.00 -0.85 -0.80 -0.75 -0.80 -0.80 -0.88 -0.87 -0.94 -1.71 -1.70 -1.74 -1.73 -1.53 -1.55 -1.54 -1.53 -1.55 -1.44 -1.35 -1.23 -1.19 -1.24 -0.89 -0.95 -0.92 -1.06 -0.37 -0.49 -0.57 -0.35 -0.41 -0.46 -0.55 -0.57 -0.55 -0.51 -1.66 -1.73 -1.72 -1.71 -1.70 -1.68 -1.68 -1.64 -1.65 -1.73 -1.75 -1.76 -1.75 -1.79 -1.80 -2.01 -2.08 -2.12 -2.17 -2.23 -2.21 -2.21 -2.17 -2.07 -1.85 -1.62 -1.46 -1.34 -1.22 -0.80 -0.87 -0.83 -0.84 0.16 0.15 0.03 -0.01 -0.09 -0.11 -0.14 -0.03 -0.04 -0.02 Philippines Philippines Philippines Philippines Philippines Philippines Philippines Philippines Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -0.38 -0.30 -0.19 -0.24 -0.35 -0.35 -0.37 -0.31 1.47 1.40 1.49 1.48 1.43 1.47 1.53 1.46 1.47 1.47 1.57 1.54 1.57 1.59 1.61 1.62 1.62 1.63 0.23 0.14 -0.03 -0.04 -0.27 -0.28 -0.32 -0.32 -0.35 -0.28 -0.26 -0.29 -0.30 -0.33 -0.32 -0.27 -0.27 -0.56 -0.38 -0.44 -0.45 -0.49 -0.48 -0.48 -0.57 2.32 2.23 2.33 2.17 2.19 2.24 2.25 2.22 2.18 2.11 2.12 2.08 2.07 2.09 2.09 2.13 2.13 2.16 -0.31 -0.17 -0.23 -0.19 -0.38 -0.37 -0.41 -0.31 -0.33 -0.32 -0.37 -0.34 -0.45 -0.49 -0.39 -0.39 -0.39 0.11 0.12 0.19 0.11 -0.02 -0.06 -0.06 0.05 1.85 1.95 1.99 1.96 2.21 2.38 2.44 2.27 2.24 2.15 2.17 2.09 2.18 2.24 2.19 2.21 2.22 2.22 0.31 0.37 0.32 0.40 0.45 0.36 0.22 0.27 0.19 0.21 0.22 0.25 0.34 0.35 0.34 0.38 0.40 -1.19 -1.08 -0.71 -0.86 -1.38 -1.24 -1.30 -0.88 1.26 0.88 1.09 1.16 1.25 1.17 1.35 1.18 1.17 1.19 1.37 1.38 1.19 1.31 1.50 1.59 1.62 1.53 0.51 -0.14 -0.72 -0.87 -1.13 -1.11 -1.27 -1.42 -1.44 -1.13 -1.22 -1.31 -0.91 -0.99 -0.99 -0.76 -0.78 -0.06 -0.07 -0.04 -0.04 0.00 0.02 0.02 0.01 1.94 1.82 1.77 1.75 1.75 1.81 1.87 1.78 1.79 1.79 1.97 1.97 2.23 2.26 2.18 2.12 2.11 2.16 0.18 0.38 0.23 0.47 0.24 0.14 0.21 0.22 0.17 0.20 0.24 0.23 0.27 0.29 0.17 0.14 0.15 -0.52 -0.40 -0.32 -0.34 -0.35 -0.41 -0.46 -0.48 1.41 1.57 1.66 1.71 1.59 1.61 1.61 1.57 1.63 1.67 1.73 1.71 1.82 1.81 1.83 1.82 1.86 1.88 0.38 0.16 0.11 0.05 -0.06 -0.12 -0.14 -0.23 -0.20 -0.20 -0.15 -0.12 -0.19 -0.15 0.00 0.04 0.04 -0.03 0.01 0.16 0.15 0.16 0.08 0.08 0.03 0.06 -0.02 0.08 0.13 -0.39 -0.36 -0.33 -0.23 -0.21 -0.10 0.05 0.04 -0.10 -0.16 -0.15 -0.17 -0.17 -0.18 0.32 0.22 0.13 -0.10 -0.74 -0.56 -0.53 -0.46 -0.50 -0.41 -0.32 -0.43 -0.87 -0.97 -1.03 -1.05 -1.12 Thailand Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 -0.20 -0.58 -0.57 -0.59 -0.47 -0.55 -0.53 -0.56 -0.53 -0.57 -0.54 -0.53 -0.50 -0.48 -0.41 -0.33 -0.33 -0.33 -0.33 0.52 0.51 0.47 0.41 0.36 0.43 0.46 0.74 0.71 0.71 0.62 0.63 0.62 0.56 0.51 0.58 0.57 0.60 0.39 0.45 0.42 0.47 0.38 0.34 -0.41 -0.57 -0.50 -0.73 -0.72 -0.75 -0.63 -0.71 -0.54 -0.62 -0.61 -0.53 -0.48 -0.44 -0.43 -0.45 -0.58 -0.59 -0.51 0.31 0.32 0.41 0.25 0.21 0.21 0.49 0.99 0.86 0.86 0.55 0.65 0.53 0.57 0.57 0.71 0.73 0.80 0.27 0.34 0.34 0.20 0.23 0.19 0.36 -0.44 -0.45 -0.48 -0.23 -0.25 -0.24 -0.21 -0.26 -0.26 -0.23 -0.27 -0.27 -0.07 0.07 0.01 0.00 0.00 0.04 0.89 0.75 0.24 0.60 0.87 0.92 0.89 0.92 0.90 0.90 0.84 0.87 1.09 1.06 1.08 1.14 1.16 1.32 1.02 1.16 1.09 1.09 1.27 1.24 -0.54 0.35 0.13 0.15 0.48 0.40 0.25 0.16 0.27 0.15 0.19 0.27 0.25 -0.02 0.07 0.23 0.31 0.30 0.13 1.16 1.15 1.37 1.21 1.12 1.11 1.13 1.39 1.28 1.09 0.91 1.07 1.26 1.24 1.15 1.19 1.19 1.17 0.54 0.49 0.35 0.56 0.29 0.19 0.12 -0.72 -0.56 -0.56 -0.60 -0.62 -0.56 -0.62 -0.62 -0.62 -0.60 -0.67 -0.64 -0.59 -0.48 -0.45 -0.40 -0.39 -0.26 1.09 1.03 1.21 0.91 0.94 0.99 0.78 1.09 1.11 1.15 1.15 1.11 0.99 0.85 0.59 0.72 0.69 0.63 0.56 0.63 0.47 0.64 0.55 0.51 0.10 -0.64 -0.58 -0.57 -0.32 -0.52 -0.49 -0.47 -0.54 -0.59 -0.54 -0.55 -0.51 -0.36 -0.34 0.08 0.07 0.06 -0.02 0.50 0.59 0.38 0.24 0.12 0.41 0.47 0.79 0.78 0.85 0.79 0.59 0.47 0.41 0.56 0.65 0.64 0.61 0.45 0.52 0.52 0.50 0.47 0.44 -0.83 -1.45 -1.47 -1.34 -1.40 -1.54 -1.53 -1.50 -1.48 -1.50 -1.46 -1.42 -1.37 -1.37 -1.36 -1.37 -1.40 -1.42 -1.38 -0.83 -0.78 -0.80 -0.78 -1.10 -1.06 -1.02 -0.73 -0.65 -0.61 -0.51 -0.51 -0.63 -0.75 -0.90 -0.95 -0.97 -0.95 0.16 0.16 0.15 0.15 0.12 0.12 Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0.21 0.19 0.32 0.29 0.31 0.36 0.48 0.38 0.32 0.29 0.28 0.43 -0.05 -0.06 0.09 0.03 0.24 0.35 0.41 0.24 0.10 0.03 0.02 0.25 1.11 0.98 1.12 1.02 0.92 1.00 1.12 0.95 0.87 0.84 0.86 1.00 0.11 -0.04 0.14 0.08 -0.01 0.05 0.27 0.26 0.14 0.16 0.15 0.11 0.32 0.30 0.59 0.58 0.57 0.64 0.84 0.75 0.71 0.68 0.68 0.67 0.34 0.12 0.46 0.12 0.48 0.11 0.48 0.11 0.47 0.11 0.44 0.11 0.59 0.13 0.50 0.13 0.50 0.13 0.41 0.13 0.41 0.12 0.59 -0.04 Source: World banks ... Bank Risk Governance and Risk- Taking: Empirical Results (RQ2) .113 4.4.1 Bank risk governance and insolvency risk 113 4.4.2 Bank risk governance and credit risk 118 4.4.3 Bank risk. .. 2.2, introduces risk and risk governance in the banking sector, which is related to the three research questions It introduces and discusses certain key terms, including bank risk, risk- taking, and. .. committees and external audits, and stand-alone risk committees in the banking sector 2.2.1 Bank risks 2.2.1.1 Risk and different types of risk within the banking sector ? ?In the context of business, risk