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Author: Dr. Yogendra Nath Mann Publisher: ISBN: Category : Languages : en Pages :
Book Description
The fast changing financial environment exposes the banks to various types of risk. The concept of risk and management are core of financial enterprise. The financial sector especially the banking industry in most emerging economies including India is passing through a process of change. Rising global competition, increasing deregulation, introduction of innovative products and delivery channels have pushed risk management to the forefront of today's financial landscape. Ability to gauge the risks and take appropriate position will be the key to success. Today, The Indian Economy is in the process of becoming a world class economy. The Indian banking industry is making great advancement in terms of quality, quantity, expansion and diversification and is keeping up with the updated technology, ability, stability and thrust of a financial system, where the commercial banks play a very important role, emphasize the very special need of a strong and effective control system with extra concern for the risk involved in the business. Globalization, Liberalization and Privatization have opened up a new methods of financial transaction where risk level is very high. In banks and financial institutions risk is considered to be the most important factor of earnings. Therefore they have to balance the relationship between risk and return. Basel III is just a part of the financial sector reforms agenda being pursued by G20. While the immediate challenge is to ensure consistent implementation of Basel II and Basel III across banks and jurisdictions, other important issues such as strengthening the corporate governance, compensation practices, and resolution regimes; enhancing the regulatory and supervisory framework for global and domestic Systemic Important Banks (SIBs); improving the OTC derivatives markets; and regulation of shadow banking system have also been addressed or are engaging the attention of FSB and Basel Committee. The macro prudential framework under Basel III is still untested and would need continuous research, monitoring, and experience-sharing among the regulators to ensure its effectiveness.
Author: Dr. Yogendra Nath Mann Publisher: ISBN: Category : Languages : en Pages :
Book Description
The fast changing financial environment exposes the banks to various types of risk. The concept of risk and management are core of financial enterprise. The financial sector especially the banking industry in most emerging economies including India is passing through a process of change. Rising global competition, increasing deregulation, introduction of innovative products and delivery channels have pushed risk management to the forefront of today's financial landscape. Ability to gauge the risks and take appropriate position will be the key to success. Today, The Indian Economy is in the process of becoming a world class economy. The Indian banking industry is making great advancement in terms of quality, quantity, expansion and diversification and is keeping up with the updated technology, ability, stability and thrust of a financial system, where the commercial banks play a very important role, emphasize the very special need of a strong and effective control system with extra concern for the risk involved in the business. Globalization, Liberalization and Privatization have opened up a new methods of financial transaction where risk level is very high. In banks and financial institutions risk is considered to be the most important factor of earnings. Therefore they have to balance the relationship between risk and return. Basel III is just a part of the financial sector reforms agenda being pursued by G20. While the immediate challenge is to ensure consistent implementation of Basel II and Basel III across banks and jurisdictions, other important issues such as strengthening the corporate governance, compensation practices, and resolution regimes; enhancing the regulatory and supervisory framework for global and domestic Systemic Important Banks (SIBs); improving the OTC derivatives markets; and regulation of shadow banking system have also been addressed or are engaging the attention of FSB and Basel Committee. The macro prudential framework under Basel III is still untested and would need continuous research, monitoring, and experience-sharing among the regulators to ensure its effectiveness.
Author: Prajakta Prabhune Publisher: ISBN: 9781520244587 Category : Languages : en Pages : 386
Book Description
Risk Management in Indian Banking Sector is a Riskpro Publication and a comprehensive reference for the Indian Banking industry, covering various aspects of Risk and Compliance. This useful guide emphasize on Basel III Compliance, Capital Adequacy, derivatives, liquidity analysis, market risk, structured products, credit risk, securitizations etc. This is one of the foremost books written by the Industry expert in the BASEL III Compliance
Author: R S Raghavan Publisher: Notion Press ISBN: 9384391468 Category : Business & Economics Languages : en Pages : 454
Book Description
"Banking is run on the premise that not all the Depositors would ask for their money back fully, at the same time and not all the borrowers can meet their committed financial obligations, at all times.. There exists cash flow mismatch arising out of primarily borrowing short (Deposits) and lending long (Loans), giving rise to the concept of Risk Management. Understanding Risk is akin to undertaking a boat journey in sea, as the subject is quite vast and depth is unknown. An attempt is made in the book to be comprehensive with an intention to initiate and encourage all to identify, manage and mitigate the risk running across the banking functions. cover almost every topic on Risk in Banking, the Business Driver, that an inquisitive & curious banker might want to know. enable the readers to acquire a firm grip on the fundamentals of and foundations on risk management, while treading on the same. encompass all the aspects on the subject of “Risks in Banks”, and serve as one-point accessible reference, embracing all the dimensions of Risks. sensitise the banking and finance professionals on the subject of “Risk” having immense potentials & huge impact in the financial market. Basel norms are proved to be a moving target, as the goal poles get shifted every now and then, even before covering the entire distance of Basel I, II, III, etc. The Book is a must for all Bankers, be it at an entry level Junior Employee as openings in the banking career are on the rise or an exit level top-ranked General Managers, who are all expected to know Risk to further climb up the ladder. The Book may prove to be a wonderful addition to the Libraries of Management Institutes and financial organisations in general & Banks, in particular and a worthy handbook for students and officials of these two entities. With reading and re-reading followed by internalization of the subject “Risk”, the reader should be able to comprehend risk well. In the words of Mark Twain, a great writer from Florida, Missouri, “The man who does not read a good book has no advantage over the person who cannot read”. The reader-friendly Book, extent of coverage, affordability of price, production and publishing values, etc., it brings along, make it an interesting read for the Banking fraternity."
Author: Dr. Mustari Hanmanth. N. Publisher: Lulu.com ISBN: 1304923622 Category : Business & Economics Languages : en Pages : 621
Book Description
Banking is the life line of the economy. Prosperity and adversity of an economy hinges upon the performance of its banking sector. Banks are primarily engaged in mobilisation of funds and its subsequent channelization towards productive activities which are must for economic development. In trying to do so banks are exposed to wide variety of risks, an effective and efficient bank risk management is essential but not so easy. In fact risk management in banks is over sold conceptually yet under utilised in practice. In this backdrop, we felt the need for a book which through flood light on different dimensions of risk management in banks. This has resulted in to the emergence of this book. It is our immense pleasure to place this book with humbleness in to the hands of readers so as to add to pool of their knowledge.
Author: Vanessa Le Leslé Publisher: International Monetary Fund ISBN: 1475502656 Category : Business & Economics Languages : en Pages : 50
Book Description
In this paper, we provide an overview of the concerns surrounding the variations in the calculation of risk-weighted assets (RWAs) across banks and jurisdictions and how this might undermine the Basel III capital adequacy framework. We discuss the key drivers behind the differences in these calculations, drawing upon a sample of systemically important banks from Europe, North America, and Asia Pacific. We then discuss a range of policy options that could be explored to fix the actual and perceived problems with RWAs, and improve the use of risk-sensitive capital ratios.
Author: International Monetary Fund. Monetary and Capital Markets Department Publisher: International Monetary Fund ISBN: 1484337085 Category : Business & Economics Languages : en Pages : 199
Book Description
This report evaluates the Observance of the Basel Core Principles for Effective Banking Supervision in India. It highlights that the supervision and regulation by the Reserve Bank of India remain strong and have improved in recent years. A key achievement is implementation of a risk-based supervisory approach that uses a complex supervisory assessment framework to guide the intensity of supervisory actions and the allocation of supervisory resources. Also, most of the Basel III framework has been implemented and cooperation arrangements, both domestically and cross-border, are now firmly in place. The system-wide asset quality review and the strengthening of prudential regulations in 2015 testify to the authorities’ commitment to transparency and a more accurate recognition of banking risks.
Author: Tobias Adrian Publisher: International Monetary Fund ISBN: 1484343913 Category : Business & Economics Languages : en Pages : 53
Book Description
The evolution of risk management has resulted from the interplay of financial crises, risk management practices, and regulatory actions. In the 1970s, research lay the intellectual foundations for the risk management practices that were systematically implemented in the 1980s as bond trading revolutionized Wall Street. Quants developed dynamic hedging, Value-at-Risk, and credit risk models based on the insights of financial economics. In parallel, the Basel I framework created a level playing field among banks across countries. Following the 1987 stock market crash, the near failure of Salomon Brothers, and the failure of Drexel Burnham Lambert, in 1996 the Basel Committee on Banking Supervision published the Market Risk Amendment to the Basel I Capital Accord; the amendment went into effect in 1998. It led to a migration of bank risk management practices toward market risk regulations. The framework was further developed in the Basel II Accord, which, however, from the very beginning, was labeled as being procyclical due to the reliance of capital requirements on contemporaneous volatility estimates. Indeed, the failure to measure and manage risk adequately can be viewed as a key contributor to the 2008 global financial crisis. Subsequent innovations in risk management practices have been dominated by regulatory innovations, including capital and liquidity stress testing, macroprudential surcharges, resolution regimes, and countercyclical capital requirements.
Author: Tanupa Chakraborty Publisher: ISBN: Category : Languages : en Pages :
Book Description
Basel norms are designed to ensure safety and stability of the banking system at an international level. The norms were introduced in 1988 in the name of Basel I, which through subsequent and continuous modification has now taken the shape of Basel III. Indian banks being internationally active, are well preparing themselves to comply with the new Basel III norms. The paper tries to collect and investigate the views of bankers, researchers and experts in the field of banking risk management about the effectiveness of Basel norms for risk management in Indian banking industry.
Author: Sirus Sharifi Publisher: ISBN: Category : Languages : en Pages :
Book Description
This paper attempts to analyze the relationship between Operational Risk Management (ORM), Size, and ownership of Indian Banks. This is important in the context of financial crisis experienced by developed countries due to lax regulation. ORM practices of Indian banks are proxied by excess capital (over the required minimum capital for operational risk). Size of a bank is measured as deposits plus advances. Our sample includes 61 Indian banks during the period from 2010 to 2013. We empirically examine the impact of bank size on excess capital using panel data regression model. The results suggest that size of Indian banks is inversely related to excess capital held by them for managing operational risk. The inverse relationship implies that smaller banks hold higher excess capital over the required minimum as per Basel norms. There is no significant relationship between ownership (public, private, and foreign) and excess capital held by banks for managing operational risk.The study has implications for Indian banks given the high level of losses due to bad loans, and the implementation of Basel III norms by the central bank, i.e. Reserve Bank of India (RBI). The study has implications for Indian financial system as a large percentage (about 33%) of household savings are deployed in deposits with commercial banks and other financial institutions. The bank failure(s) can have disastrous consequences for the Indian economy, as the capacity of the Indian financial system to withstand such shocks is highly doubtful. There is very little evidence on operational risk management practices of Indian banks, and its relationship with size and ownership. The study assumes significance in the context of significant changes in the institutional and regulatory framework.
Author: Dr. Yogendra Nath Mann
Author: Dr. Yogendra Nath Mann
Author: Prajakta Prabhune
Author: R S Raghavan
Author: 
Author: Dr. Mustari Hanmanth. N.
Author: Vanessa Le Leslé
Author: International Monetary Fund. Monetary and Capital Markets Department
Author: Tobias Adrian
Author: Tanupa Chakraborty
Author: Sirus Sharifi