Value at Risk Disclosures: The Case of Canada Revisited

This paper is based on the empirical analysis that has been conducted by (Pérignon, Deng and Wang, 2007), to test whether the Royal bank of Canada (RBC) and the Bank of Montreal (BMO) are overstating their Value at Risk (VaR). This study is based on non-anonymous data of the daily VaR and P&L fo...

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Main Author: Alkhub, Hala
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2011
Online Access:https://eprints.nottingham.ac.uk/25329/
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author Alkhub, Hala
author_facet Alkhub, Hala
author_sort Alkhub, Hala
building Nottingham Research Data Repository
collection Online Access
description This paper is based on the empirical analysis that has been conducted by (Pérignon, Deng and Wang, 2007), to test whether the Royal bank of Canada (RBC) and the Bank of Montreal (BMO) are overstating their Value at Risk (VaR). This study is based on non-anonymous data of the daily VaR and P&L for both banks within the period starting from the year 2001 till the year 2010. The paper exhibits results contradicting those of (Pérignon, Deng and Wang, 2007) , it shows that RBC and BMO do not overstate their VaR; in other words the banks are accurate in disclosing their VaR measure according to the data derived from the analyses performed. The data used in this paper is based on the graphs extracted from the banks’ annual reports using the R software for computing statistics to transfer the graphs into time series data. After extracting the data conditional and unconditional coverage tests were performed to test the accuracy of disclosing daily VaR and profit and loss data. Two benchmarks have been developed; the Historical Simulation and the GARCH model to compare the commercial banks' VaR with the forecasted VaR depending on the benchmarks.
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spelling nottingham-253292018-01-22T13:35:49Z https://eprints.nottingham.ac.uk/25329/ Value at Risk Disclosures: The Case of Canada Revisited Alkhub, Hala This paper is based on the empirical analysis that has been conducted by (Pérignon, Deng and Wang, 2007), to test whether the Royal bank of Canada (RBC) and the Bank of Montreal (BMO) are overstating their Value at Risk (VaR). This study is based on non-anonymous data of the daily VaR and P&L for both banks within the period starting from the year 2001 till the year 2010. The paper exhibits results contradicting those of (Pérignon, Deng and Wang, 2007) , it shows that RBC and BMO do not overstate their VaR; in other words the banks are accurate in disclosing their VaR measure according to the data derived from the analyses performed. The data used in this paper is based on the graphs extracted from the banks’ annual reports using the R software for computing statistics to transfer the graphs into time series data. After extracting the data conditional and unconditional coverage tests were performed to test the accuracy of disclosing daily VaR and profit and loss data. Two benchmarks have been developed; the Historical Simulation and the GARCH model to compare the commercial banks' VaR with the forecasted VaR depending on the benchmarks. 2011-12-15 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/25329/1/Hala_Alkhub_Dissertation.pdf Alkhub, Hala (2011) Value at Risk Disclosures: The Case of Canada Revisited. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Alkhub, Hala
Value at Risk Disclosures: The Case of Canada Revisited
title Value at Risk Disclosures: The Case of Canada Revisited
title_full Value at Risk Disclosures: The Case of Canada Revisited
title_fullStr Value at Risk Disclosures: The Case of Canada Revisited
title_full_unstemmed Value at Risk Disclosures: The Case of Canada Revisited
title_short Value at Risk Disclosures: The Case of Canada Revisited
title_sort value at risk disclosures: the case of canada revisited
url https://eprints.nottingham.ac.uk/25329/