This book was dedicated to the calculation of market and credit risks in banks. In this book, had been given practice example in computing the risks of bank. At the same time, the content of this book consists of explanation of the methodology of VaR and Z-score approach. Moreover, VaR and Z-score had been calculated for market and credit risks respectively. The book is useful for bankers, researchers and students.
A practical guide to the practices and procedures of effectively managing banking risks Managing Risks in Commercial and Retail Banking takes an in-depth, logical look at dealing with all aspects of risk management within the banking sector. It presents complex processes in a simplified way by providing real-life situations and examples. The book examines all dimensions of the risks that banks face—both the financial risks—credit, market, and operational—and the non-financial risks—money laundering, information technology, business strategy, legal, and reputational. Focusing on methods and models for identifying, measuring, monitoring, and controlling risks, it provides practical advice backed up by solid theories, without resorting to the use of complicated mathematical and statistical formulas. Author Amalendu Ghosh exposes topics that are usually absent in books on managing banking risk—such as design of control framework, risk management architecture, credit risk rating, risk-based loan pricing, portfolio analysis, business continuity planning, and corporate governance. Author has extensive experience with a variety of major banks and institutions worldwide and brings a fresh perspective in the wake of the global finance crisis Presents a novel approach using models of the credit risk rating of different types of borrowers, the methodology for assigning weights for deriving the rating, and the scoring process Covers the essentials of corporate governance and options for credit risk assessment in line with the recommendations made in the New Basel Capital Accord Explains the methodology of risk-based internal audit, including techniques to enable bank branches to switch over from the old transaction-based audit methods With its logical sequence of the aspects of risk management, the book's layout is ideal for presentations, making it a handy tool for risk management training
Recently, financial stability of the banking sector has been a widely discussed issue. Above all, assessment of the appropriate amount of capital that banks should put aside to guard against various types of risks that they face is a great challenge. One of the techniques that help to answer the question of whether a bank and the banking sector have a sufficient capital buffer for the case of a crisis is called stress testing. Stress testing is a macro-prudential analytical method of assessing the resilience of the financial system to severe but plausible events. The book describes the methodology of stress tests and shows case studies for credit and market risks on real bank-by-bank data in two Balkan countries: Croatia and Serbia. Setting-up a proper framework for countries that have not been covered in detail in the literature and that face limited availability of data was the major challenge of the work. The outcome can reveal potential risks to financial stability. The methods described in this book can be applied to test the soundness of the financial sectors in other emerging markets that suffer from data limitations.
This book presents a clear and broad introduction to economists.The purpose of this book is to help to solve the tax evasion problem on risk based approach. The problems are solved by implementing the valuable statistical methods. It includes some practical approaches in revealing the risky tax payers. The book is aimed at economists working in the areas of tax and finance.It is useful for students,tax workers and researchers.
E-Banking Prospects and Problems comes as modest attempt to aware the students and readers about e-banking services, issues, challenges and risks of E-banking in Indian banking sector.It gives overall idea of E-banking services.It describes tools, structure, advantages and disadvantages of E banking. It discusses risks, challenges and issues related to E-banking. It focuses on online security system and security precautions that will help readers to cautious while using E-banking.It also refers to guidelines issued by Reserve Bank of India.
Auditing profession is seeking to confirm the information disclosed in the financial statements so always faced with the danger that lies ahead auditor.Including the risks that may be inherent risks, such as honesty or integrity of the information disclosed by the Board of Directors and not consistent with the facts Or collusion of employees and managers that can bypass the internal controls cited. For these reasons, the auditor should have an appropriate assessment of risks ahead When the finger points to the auditor to be able to provide a defense of their work.
The effects of the great recession affecting the world economy since 2008 have so far had numerous negative consequences reflected primarily in strong recession and rising unemployment. They have varied from country to country and from region to region. Subject of research in this book is assessment of interest rates in SEE banking sector during crisis. Key time points for: 1) SEE banking interest rates will be 2008 and 2011, and 2) 2010 for Serbian banking sector, in accordance with available data. SEE countries subject of analysis are Serbia, Croatia, Bosnia and Herzegovina, Montenegro, Bulgaria, Macedonia and Albania. It is in accordance with IMF methodology. Period of analysis is between 2007 and 2012.
Islamic Banking and Finance is known to be the fastest growing economic system of the current time. It has always been in discussion that how the unique engraved risks of Islamic Finance be avoided or reduced to minimum. This book provides a comprehensive and all-encompassing view of different Risk Management Practices in Islamic Banking and Finance. This Book is equally helpful for students to build a theoretical understanding of Risk Management Techniques in Islamic Banking as well as for professionals who are practically applying these practices. This book will help them manage different risks in Islamic Banking field more appropriately.
In Ethiopia poor cannot get loan from formal financial institutions due to lack of asset used as collateral. Microfinance institutions are choice-less solution since they have the advantage for poor in substituting collateral by group guarantees or compulsory savings which makes easy for poor to get access to loan. Even though these institutions are the solution for poor they have got risks which hinder their sustainability and performance. Henceforth, these risks ought to be clearly identified and prioritized so that their effect on performance will be minimized and growth and achievement of these institutions will be fostered. When these risks are handled well poor can get access to loan easily which makes them to make use of the loan to generate income for their daily expense which in turn paves way to growth and prosperity of the country. The result from the study revealed that microfinance institutions in Ambo area are affected by internal and external risks to the institutions. Credit risk is identified as a risk with high severity where as competition and customer over-indebtedness risks are low severe risks in affecting the performance of microfinance institutions.
This book contributes to a better understanding of financial system fragility in Bosnia and Herzegovina and similar countries in several ways. It is found that both country and period specifics must be accounted for. Accordingly, each country should develop its own tailored measure of systemic risk, since some of the widely used set of indicators may distort the perception of risk. There are substantial gains in modelling the risks of banking and currency crises as a system. It is demonstrated that even in a country with a simple financial system and dominant banking sector a single model cannot explain the evolution of systemic risk over the cycle. The nature of the risk factors, their relations with the perceived level of fragility, as well as the relationship between the measures of systemic risk were found to differ in pre-shock from the post-shock periods. Finally, it is shown that even simple financial systems are inherently unstable, with destabilizing relationships between the risks of banking and currency crises and developments in the real economy.
Product Life Cycle Assessment to Reduce Health Risks and Environmental Impacts,
This book examines impact of e-banking on the performance of banks operating to maximize profit. It covers adoption, acceptance and risks of adopting internet banking. The books also covers e-banking profit maximization theory developed by the author through empirical research on Nigerian Commercial Banks, using empirical data obtained for 12 years. Cost and revenue implications of adopting e-banking is addressed in this book.
Risk Management, the process of measuring the risks, controlling them and implementing measures in order to achieve the desired risk profile, is fundamental to all aspects of a bank’s activities. Due to the liberalization of financial markets, advances in technology and the various risks brought by these developments, the way that banks practice Risk Management has substantially changed during the last years. The important role that an effective Risk Management plays in ensuring banks’ profitability and continuity is widely proven. This survey was conducted to provide a status position on the extent to which Risk Management is practiced by banks in North Cyprus. The survey revealed that risk management systems in TRNC banks are relatively underdeveloped and there is a low level of awareness in banks on the importance of employing an integrated Risk Management framework. There are various gaps that demonstrate the need for developing Risk Management in TRNC banking sector and employing innovative Risk Management tools to manage the risks, non-credit risks in particular.
The Bank was awarded ISO 9002 accreditation for its personal and business banking services. This ISO 9002 designation is the first of its kind for a bank in Bangladesh. HSBC extended its operation to the consumer banking sector in Bangladesh once it realized the huge growth potential in this segment. HSBC is currently providing a large number of personal asset products to a growing consumer base in Bangladesh. Analysis of consumer credit products of HSBC shows that it is one of the important products of the bank. Growth in the consumer banking sector has resulted in the penetration of the risk pool of potential customers. Credit limit decisions have to be made in a standardized and systematic way in order to process the loans rapidly and effectively. Credit Analysts make subjective decisions based on old financial information, a different set of facts and feelings in each case, and an intuitive weighting system based on personal experience. This paper focuses on how the loans were carried, starting from the application through to the disbursement. It also shows the number and amount of the loan disbursement by year and how much is recovered over the years.
Climate change is now arrived to the point of worrying. It has a real impact for almost all sectors of human life and this has continued and has not been able to predict when the end of this terrible impact. A variety of evidence in the encounter, especially in countries of Asia-pacific islands which is a wide range of effects that interfere with the stability of human life such as food sector, health, environmental and even social, political and economic development are also affected. The general effect that occurs in areas of the Asia-Pacific islands such as rising sea levels in some areas of the country Fiji, Indonesia, Kiribati, Palau, Tonga, Tuvalu and other countries in the Pacific. Commonly encountered in Addition to the impact of climate change as well as rising of sea levels, El Nino, deterioration of health, disappearance of small islands, and many more. Therefore this book is taking action an analysis assessment to deal with climate change impact. An analysis of this assessment can be implemented in archipelagic countries which has the same case such as description of his book.