New Basel Capital Accord and Risk Evaluation in Commercial Banks
Song Wei-wei
Abstract
Song Wei-wei
Abstract
This paper deals with the risk evaluating methods in New Basel Capital Accord for credit risk,market risk and operation risk,and the necessary conditions for the implementation of the corresponding methods.Based on New Basel Capital Accord,it puts forward requirements for the risk management of China commercial banks: advocating the development of all-level evaluating organizations;seeking risk balance actively to realized comprehensive risk management;deepening risk management methods and develop actively risk-control tools;and changing risk evaluating methods from simple to complex.
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This paper deals with the risk evaluating methods in New Basel Capital Accord for credit risk,market risk and operation risk,and the necessary conditions for the implementation of the corresponding methods.Based on New Basel Capital Accord,it puts forward requirements for the risk management of China commercial banks: advocating the development of all-level evaluating organizations;seeking risk balance actively to realized comprehensive risk management;deepening risk management methods and develop actively risk-control tools;and changing risk evaluating methods from simple to complex.
Key concepts: Risk-adjusted return on capital, Operational risk, Economic capital, Risk management, Risk-weighted asset, Basel II, Business, Risk analysis (engineering)