06 December 2012

The Roles of Corporate Governance in Bank Failures during the Recent Financial Crisis (Webcast)

Posted In: Standards, Ethics & Regulations (SER)

In the keynote session from the Emerging Scholars in Banking and Finance Conference, Allen N. Berger of the University of South Carolina, will discuss his recent paper analyzing the role of corporate governance in bank defaults during the financial crisis of 2007–2010. Using a data sample of 249 default and 4,021 no-default US commercial banks, Berger and his coauthors investigated the impact of bank ownership and management structures on the probability of default.

Professor Berger will also explore whether other accounting variables, such as capital, earnings, and nonperforming loans, also help predict bank defaults. His study also shows that other potential stability indicators — such as the management structure of the bank, indicators of market competition, subprime mortgage risks, state economic conditions, and regulatory influences — do not appear to be decisive factors in predicting bank defaults.

The presentation was broadcast live at 18:30–19:30 GMT on 11 December 2012.

Download the slides from this presentation.

Share On

About the Author(s)

Usman Hayat, CFA

Usman Hayat, CFA, writes about sustainable, responsible, and impact investing and Islamic finance. He is the lead author of "Environmental, Social, and Governance Issues in Investing: A Guide for Investment Professionals;" the literature review, "Islamic Finance: Ethics, Concepts, Practice;" and the research report "Sustainable, Responsible, and Impact Investing and Islamic Finance: Similarities and Differences." He is interested in online learning and has directed three e-courses for CFA Institute: "ESG-100," "Islamic Finance Quiz," and "Residual Income Equity Valuation." The other topics he writes about are macroeconomics and behavioral finance. He has experience working in securities regulation and as an independent consultant. His qualifications include the CFA charter, the FRM designation, an MBA, and an MA in development economics. He has served as a content director at CFA Institute. He is a former executive director at the Securities and Exchange Commission of Pakistan (SECP) and former CEO of the Audit Oversight Board (Pakistan). His personal interests include reading and hiking.