Credit Risk Disclosure Practices in the Annual Financial Reporting of Large Italian Banks

The topic of this chapter is the evaluation of credit risk disclosure practices in the annual financial reporting of banks. The empirical research is conducted on a sample of ten large Italian banks. The authors employ content analysis and propose a hybrid scoring model for the assessment of credit risk disclosure. The chapter provides empirical evidences on the differences that charac-terize credit risk reporting practices in banking, even though banks are under the rule of identical accounting standards and regulatory structures.