Haar, Lawrence; Gregoriou, Andros - In: Risks : open access journal 11 (2023) 6, pp. 1-23
aligning the cost of capital with their exposure to market risk, measured by Value at Risk; or if regulations have induced … capitalised; it leads to changes in the nature of exposures. Risk has declined along with financial performance while the cost of … capital is largely unchanged. A consequence of regulation may be to encourage the migration of riskier activities to …