Taiwan Banks' Risk Management Crucial for Global Financial Stability
The article examines how banks in Taiwan manage risks and capital using VaR analyses. It found that top management support is crucial for risk mechanisms, and local banks need global VaR and EaR summaries. Local banks plan to adopt different methods for evaluating credit risk, with some facing challenges in establishing credit risk models. The Basel Accord sets standards for banks to maintain capital adequacy and manage market risks effectively.