Operational risk: impact assessment of the revised standardized approach on Indian banks

2016 ◽  
Author(s):  
Pankaj Sinha ◽  
Sakshi Sharma
Keyword(s):  
Impact Assessment ◽  
Operational Risk ◽  
Indian Banks

Operational Risk Disclosure Practices in Emerging Economies

2020 ◽  
pp. 172-195
Author(s):  
Harshmeeta Kaur Soni ◽  
Muneesh Kumar
Keyword(s):  
Risk Management ◽  
Operational Risk ◽  
Risk Disclosure ◽  
Management Framework ◽  
Operational Risks ◽  
Risk Management Framework ◽  
Reserve Bank ◽  
Indian Banks ◽  
New Guidelines ◽  
Risk Disclosures

Risk disclosures provide an insight into the risk management policies and practices adopted by institutions and are useful in assessing the risk for various stakeholder groups. With the increasing incidence and complexity of operational risks in banks, it is imperative for banks to establish and follow suitable operational risk disclosure practices. The chapter attempts to examine the operational risk disclosure practices and the impact of bank specific characteristics on disclosure practices among Indian banks. Findings indicate disclosure levels to be inadequate, showing an insignificant improvement over the years. Bank profitability and depositor confidence significantly impact disclosure practices. The authors suggest that Indian banks should enhance their current operational risk disclosure levels to communicate to the stakeholders about the strength of their operational risk management framework. The Reserve Bank of India may issue new guidelines with respect to minimum disclosure requirements on operational risk to improve the quality of disclosures.

Relationship between operational risk management, size, and ownership of Indian banks

2016 ◽  
Vol 42 (10) ◽  
pp. 930-942 ◽  
Author(s):  
Sirus Sharifi ◽  
Arunima Haldar ◽  
S.V.D. Nageswara Rao
Keyword(s):  
Risk Management ◽  
Financial System ◽  
Operational Risk ◽  
Developed Countries ◽  
Content Type ◽  
Operational Risk Management ◽  
Minimum Capital ◽  
Indian Banks ◽  
High Level ◽  
The Impact

Purpose The purpose of this paper is to analyse the relationship between operational risk management (ORM), size, and ownership of Indian banks. This is important in the context of financial crisis experienced by developed countries due to lax regulation. Design/methodology/approach ORM practices of Indian banks are proxied by excess capital (over the required minimum capital for operational risk). Size of a bank is measured as deposits plus advances. Our sample includes 61 Indian banks during the period from 2010 to 2013. The authors empirically examine the impact of bank size on excess capital using panel data regression model. Findings The results suggest that size of Indian banks is inversely related to excess capital held by them for managing operational risk. The inverse relationship implies that smaller banks hold higher excess capital over the required minimum as per Basel norms. There is no significant relationship between ownership (public, private and foreign) and excess capital held by banks for managing operational risk. Practical implications The study has implications for Indian banks given the high level of losses due to bad loans, and the implementation of Basel III norms by the central bank, i.e. Reserve Bank of India. Social implications The study has implications for Indian financial system as a large percentage (about 33 per cent) of household savings are deployed in deposits with commercial banks and other financial institutions. The bank failure(s) can have disastrous consequences for the Indian economy as the capacity of the Indian financial system to withstand such shocks is highly doubtful. Originality/value There is very little evidence on ORM practices of Indian banks, and its relationship with size and ownership. The study assumes significance in the context of significant changes in the institutional and regulatory framework.

Service for equipage impact assessment

2010 ◽  
Author(s):  
Beth L. Blickensderfer ◽  
Albert J. Boquet ◽  
Ryan Blanding ◽  
Tripp J. E. Driskell ◽  
Clyde Rinkinen ◽  
...  
Keyword(s):  
Impact Assessment
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