The Basel III Accord and Risk Management of Financial Companies
Xinyi Yu
Abstract
Xinyi Yu
Abstract
Based on the background of the Basel III Accord,this paper analyzes the latest progress of the Basel III Accord.It emphatically analyzes the influence of the Basel III Accord on risk management of financial companies from six perspectives including the definition of capital,counterpart's credit risk management,liquidity risk management,systematic risk management,countercyclical regulatory capital framework,and leverage.Finally,it proposes the countermeasures for a better risk management of financial companies.
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Based on the background of the Basel III Accord,this paper analyzes the latest progress of the Basel III Accord.It emphatically analyzes the influence of the Basel III Accord on risk management of financial companies from six perspectives including the definition of capital,counterpart's credit risk management,liquidity risk management,systematic risk management,countercyclical regulatory capital framework,and leverage.Finally,it proposes the countermeasures for a better risk management of financial companies.
Key concepts: Risk-weighted asset, Basel I, Basel II, Basel III, Risk management, Business, Operational risk, Capital requirement