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The Effect Of Off-Site Examination: A Natural Experiment After Covid-19, Whan Kyu Shin
The Effect Of Off-Site Examination: A Natural Experiment After Covid-19, Whan Kyu Shin
Olin Business School Electronic Theses and Dissertations
I examine the effectiveness of off-site bank examinations by using the natural experiment during COVID-19. Exploiting the difference in the amount of soft information and in the effect of the change to off-site examination between the banks far from the supervisory field office and those near the field office, I find that distant banks increase asset risk regarding RWA to asset ratio and become less conservative in anticipating or preparing for future losses from loan portfolios. I also show that distant banks that adjust the loan portfolio to be riskier are less profitable, and the effect is prominent among the …
The Effect Of Off-Site Examination: A Natural Experiment After Covid-19, Whan Kyu Shin
The Effect Of Off-Site Examination: A Natural Experiment After Covid-19, Whan Kyu Shin
Olin Business School Electronic Theses and Dissertations
I examine the effectiveness of off-site bank examinations by using the natural experiment during COVID-19. Exploiting the difference in the amount of soft information and in the effect of the change to off-site examination between the banks far from the supervisory field office and those near the field office, I find that distant banks increase asset risk regarding RWA to asset ratio and become less conservative in anticipating or preparing for future losses from loan portfolios. I also show that distant banks that adjust the loan portfolio to be riskier are less profitable, and the effect is prominent among the …