A combination model for operational risk estimation in a Chinese banking industry case

2012 ◽  
Vol 7 (2) ◽  
pp. 17-39 ◽  
Author(s):  
Jichuang Feng ◽  
Jianping Li ◽  
Lijun Gao ◽  
Zhongsheng Hua
Keyword(s):  
Banking Industry ◽  
Risk Estimation ◽  
Operational Risk ◽  
Combination Model ◽  
Chinese Banking Industry ◽  
Chinese Banking

Should the Advanced Measurement Approach for Operational Risk be Discarded? Evidence from the Chinese Banking Industry

2019 ◽  
Vol 22 (01) ◽  
pp. 1950007 ◽  
Author(s):  
Xiaoqian Zhu ◽  
Jianping Li ◽  
Dengsheng Wu
Keyword(s):  
Banking Industry ◽  
Operational Risk ◽  
Banking Supervision ◽  
Clear Trend ◽  
The Past ◽  
Regulatory Frameworks ◽  
Chinese Banks ◽  
Chinese Banking Industry ◽  
Measurement Approach ◽  
Chinese Banking

The Basel Committee on Banking Supervision (BCBS) states that in addition to the fact that it lacks simplicity, the Advanced Measurement Approach (AMA) must be discarded because the flexibility of AMAs does not narrow as envisioned prior. This paper discusses whether this judgment of the BCBS holds for the Chinese banking industry. We first review the development of operational risk data collection and AMAs in China over the past decade. Then, capital requirement results for Chinese banks based on these datasets and approaches are summarized and analyzed. It is shown that along with the accumulation of operational risk data and the refinement of AMAs, operational risk results for the Chinese banking industry have shown a clear trend of convergence that is exactly opposed to judgments of the BCBS. Therefore, the removal of the AMA from regulatory frameworks may not be reasonable.

scholarly journals Does competition only impact on insolvency risk? New evidence from the Chinese banking industry

2017 ◽  
Vol 13 (3) ◽  
pp. 332-354 ◽  
Author(s):  
Yong Tan ◽  
John Anchor
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Banking Industry ◽  
Liquidity Risk ◽  
Empirical Literature ◽  
Content Type ◽  
Insolvency Risk ◽  
Chinese Banking Industry ◽  
The Impact ◽  
Chinese Banking

Purpose The purpose of this paper is to investigate the impact of competition on credit risk, liquidity risk, capital risk and insolvency risk in the Chinese banking industry during the period 2003-2013. Design/methodology/approach This study uses a generalized method of moments system estimator to examine the impact of competition on risk. In particular, translog specifications are used to measure the competition and insolvency risk. Findings The results show that greater competition within each bank ownership type (state-owned commercial banks, joint-stock commercial banks and city commercial banks) leads to higher credit risk, higher liquidity risk, higher capital risk, but lower insolvency risk. Originality/value This paper is the first piece of research testing the impact of competition on different types of risk in banking industry and it further contributes to the empirical literature by using a more accurate competition indicator (efficiency-adjusted Lerner index) and a more precise insolvency risk indicator (stability inefficiency).

Privatization and optimal share release in the Chinese banking industry

2009 ◽  
Vol 26 (6) ◽  
pp. 1161-1171 ◽  
Author(s):  
Chien-Hsun Chen ◽  
Chao-Cheng Mai ◽  
Yu-Lin Liu ◽  
Shin-Ying Mai
Keyword(s):  
Banking Industry ◽  
Chinese Banking Industry ◽  
Chinese Banking
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