Economics, Econometrics and Finance
8 years ago

Chinese commercial banks face growing operational risk despite current control measures.

Scientific Decision-Making
the overall operational risk assessment of Chinese commercial banks——Based on the loss distribution of the Monte Carlo simulation
Duan Jun-shan

Paper Summary

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Commercial banks in China are facing increasing operational risks due to global competition and financial deregulation. A study using the loss distribution method found that operational risks are currently under control but may become a concern as commercial banking grows. To address this, it is recommended to establish an operational risk loss database, choose appropriate measurement methods, and create an effective early warning system to prevent operational risks.