Bank Risk Aggregation Based on the Triple Perspectives of Bank Managers, Credit Raters and Financial Analysts

Previous studies only incorporate textual risk information disclosed by bank managers into bank risk aggregation. Besides bank managers, credit raters and financial analysts are two other important risk information sources. Thus, this paper first expands the sources of textual risk disclosures in bank risk aggregation to the triple perspectives of bank managers, credit raters, and financial analysts to obtain more reasonable bank risk aggregation results. By aggregating credit, market and operation risk of the U.S. banking system, we found that disregarding textual risk disclosures from credit rating reports and financial analyst reports will lead to biased bank risk aggregation results