Research Discussion Paper – RDP 1999-09 Australian Banking Risk: The Stock Market's Assessment and the Relationship Between Capital and Asset Volatility

Contents

• Introduction
• Methodology
• Data, Assumptions and Methods
• Results
• The Relationship Between a Bank's Operating and Financial Risk
• Conclusion
• Appendix A: Banking Groups
• Appendix B: Data
• Appendix C: Capital and Risk Relationship
• References

The authors would like to thank Colleen Cassidy, James Engel, Chris Kent, Philip Lowe and Geoffrey Shuetrim for helpful comments. We, nevertheless, retain responsibility for any remaining errors. The views expressed herein are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia nor those of the Australian Prudential Regulation Authority.