Social Sciences
3 years ago

New model revolutionizes banking risk management for financial stability.

Advanced studies in emerging markets finance
Economic Capital Structure and Banking Financial Risks Aggregation
Marina Pomorina

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Revolutionizing Operational Risk Management: New Data Approach for Safer Banking

Credit Risk
Banking Finance
Financial Volatility
Economics, Econometrics and Finance
5 years ago

Revolutionizing Banking Risk Management: New Approach Combines Data for Better Estimation

Credit Risk
Banking Finance
Financial Volatility
1 view
Business, Management and Accounting
8 years ago

New Capital Requirements for Operational Risk in Banks to Impact Market Stability

Risk Management
Insurance Dynamics
Credit Risk

Banks need to balance their money and risks to stay stable. They have to follow rules about how much money they need to cover risks and how much they need to cover all their risks. A group that watches over banks wants them to regularly check their risks and have enough money. They found that banks need to choose how to combine different risks, figure out how to divide money for risks, and set limits based on the type of risks. The group came up with a way to decide how much money a bank needs based on the risks it faces. This method helps banks see where their risks are and how much money they need to cover them.