Bank stress testing, human capital investment and risk management

• 成果类型: Article
• 署名作者: Schneider, Thomas; Strahan, Philip E.; Yang, Jun
• 署名单位: University of Oklahoma System; University of Oklahoma - Norman; Boston College; National Bureau of Economic Research; University of Notre Dame
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2025.104104
• 发表日期: 2025
• 关键词: Risk management; Stress tests; human capital investment

摘要

This paper studies banks' investment in risk management human capital following the Global Financial Crisis and the advent of stress testing. Our results suggest that 'Too Big to Fail' distortions may have weakened large banks' incentive to invest in risk management talent. Stress testing, which focuses on the largest banks, spurred demand for skilled quantitative risk managers, but only narrowly in anticipation of a test and following poor performance on a test. Stress testing does not affect demand for the over 90 % of risk management jobs not linked to passing tests, limiting its effectiveness in improving risk management practices.