Dissertation/Thesis Abstract

Evolution of Risk Indicators in the Banking Industry Post the Dodd-Frank Act
by Feehan, Conor L., D.B.A., Capella University, 2020, 188; 28156752
Abstract (Summary)

The problem studied was whether there was a statistically significant change in key risk indicators (KRIs) during the 10 years after the enactment of the Dodd-Frank Act in the United States banking industry. A fundamental goal of the Dodd-Frank Act was to promote the financial stability of the United States. Researchers described the concept of a bank’s financial stability as its resilience against shocks and its ability to perform effectively in the economy following a shock. The financial industry’s stability can be negatively influenced by inappropriate risk-taking by the leaders of a financial institution. After the 2007-2009 financial crisis, leaders of organizations needed to reconsider the importance of risk management because at the core of the 2007-2009 financial crisis was the failure of bank risk management. The development of effective KRIs as risk proxies to evaluate and track risk in banks increases awareness of risk and improves the effectiveness of a bank’s risk framework. The study’s methodology included a quantitative descriptive analysis, and one-way ANOVAs examined the extent of change in KRI data. The KRI data came from the population of the 10 largest banks by total assets in the United States as of the end of 2010, which was the year the Dodd-Frank Act was enacted. Collectively, the combined assets of the 10 largest banks accounted for more than 50% of the United States banking industry assets at the end of 2010. These banks served as indicators of the evolution of risk in the United States banking system. The research question for this study examined the extent changes have occurred in KRIs for the United States’ 10 largest banks post enactment of the Dodd-Frank Act through 2019. Ten KRIs were selected for this study. The information used was secondary data pulled from each bank’s 10-K report filed with the Securities and Exchange Commission. Ten one-way ANOVAs were run against the selected KRIs. The research question was answered through testing the associated hypotheses. The examination of the data resulted in a rejection of two of the 10 null hypotheses, which indicated there was a statistically significant change in two KRIs across the 10-year period.

Indexing (document details)
Advisor: Preiksaitis, Michelle K.
Commitee: Rescigno, Elizabeth, Valentine, Dawn B.
School: Capella University
Department: School of Business, Technology and Health Administration
School Location: United States -- Minnesota
Source: DAI-A 82/5(E), Dissertation Abstracts International
Subjects: Finance, Banking, Business administration, Management
Keywords: Key risk indicators, Banking industry, Dodd-Frank Act, United States, Financial stability, Financial crisis , Assets, Bank risk management
Publication Number: 28156752
ISBN: 9798691283055
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