Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Relationships between bank customers’ risk attitudes and their balance sheets
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management. KTH, School of Architecture and the Built Environment (ABE), Centres, Centre for Banking and Finance, Cefin.ORCID iD: 0000-0001-7106-4827
2015 (English)Report (Other academic)
Abstract [en]

This paper analyzes relationships between Swedish bank customers’ risk appetite and their financial assets and debt, controlling for demographic, socio-economic, financial and educational variables including financial literacy. We use subjective risk measures, i.e. risk tolerance and risk preference, as well as an objective risk measure, i.e. relating customers’ saving deposits to more risky stocks and mutual funds as a share of total financial assets. Bank customers with high risk appetite have significantly more financial assets compared with those with medium and low risk appetite. The subjective risk measures show that those with high risk appetite have significantly higher debt than those with low risk appetite. The objective risk measure shows the opposite. The paper concludes that it is important to use several measures of risk. Also, policy makers and banks need to measure bank customers’ risk appetite in a more systematic and transparent way, in order to improve both the banks’ and their customers’ risk management, and not less importantly, to decrease macroeconomic risks.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2015. , 28 p.
Series
Working Paper Series, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin), KTH, 2015:12
Keyword [en]
Household saving, debt, risk attitudes
National Category
Business Administration
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:kth:diva-181693OAI: oai:DiVA.org:kth-181693DiVA: diva2:899738
Note

QC 20160225

Available from: 2016-02-02 Created: 2016-02-02 Last updated: 2016-11-23Bibliographically approved

Open Access in DiVA

Working paper(274 kB)118 downloads
File information
File name FULLTEXT01.pdfFile size 274 kBChecksum SHA-512
559578d40a443ef5f8ca5a571448a7ecb1fd436111f2e08d5b3e66b4b18a472a380655b690a624e042e45ec04eddfae7108b6c688fe29bb59671c8ad5ce77bd4
Type fulltextMimetype application/pdf

Other links

S-WoPEc

Search in DiVA

By author/editor
Hermansson, Cecilia
By organisation
Real Estate and Construction ManagementCentre for Banking and Finance, Cefin
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 118 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 1321 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf