Relevance of Risk Capital and Margining for the Valuation of Power Plants: Cash Requirements for Credit Risk Mitigation

2010 ◽  
Author(s):  
Joachim Lang ◽  
Reinhard Madlener
Keyword(s):  
Credit Risk ◽  
Power Plants ◽  
Risk Mitigation ◽  
Risk Capital

The relationship between risk, capital and efficiency in Indian banking: Does ownership matter?

2019 ◽  
Vol 11 (2) ◽  
pp. 218-231
Author(s):  
Sanjukta Sarkar ◽  
Rudra Sensarma ◽  
Dipasha Sharma
Keyword(s):  
Public Sector ◽  
Credit Risk ◽  
Large Data ◽  
Foreign Banks ◽  
Risk Capital ◽  
Lower Efficiency ◽  
Data Set ◽  
Content Type ◽  
Balance Sheets ◽  
Indian Banks

Purpose This paper aims to examine the interplay between risk, capital and efficiency of Indian banks and study how their relationship differs across different ownership types. Design/methodology/approach Panel regression techniques are used to analyze a large data set of all Indian scheduled commercial banks operating during the period 2008-2016. Findings The results show that lower efficiency is associated with higher credit risk in the case of public sector and old private sector banks (”bad management hypothesis”). However, higher efficiency leads to higher credit risk in the case of foreign banks (“cost skimping hypothesis”). The authors further find that the more efficient institutions among public sector hold more capital. Finally, they find that the better-capitalized banks among those in the public sector have lower risks on their balance sheets (“moral hazard hypothesis”). Originality/value There is a paucity of papers on the interplay between risk, capital and efficiency of banks in emerging economies. This paper is the first to study the inter-relationship between risk, capital and efficiency of Indian banks across ownership groups using a number of different measures of risk.

Credit Risk Management of Commercial Banks in Nepal

2019 ◽  
Vol 4 (1) ◽  
pp. 27-37
Author(s):  
Shreya Pradhan ◽  
Ajay K. Shah
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Credit Risk ◽  
Commercial Banks ◽  
Management Practices ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Credit Risk Management ◽  
Loan Repayment ◽  
Credit Risk Assessment

The study is primarily focused on credit risk assessment practices in commercial banks on the basis of their internal efficiency, assessment of assets and borrower. The model of the study is based on the analysis of relationship between credit risk management practices, credit risk mitigation measures and obstacles and loan repayment. Based on a descriptive research approach the study has used survey-based primary data and performed a correlation analysis on them. It discovered that credit risk management practices and credit risk mitigation measures have a positive relationship with loan repayment, while obstacles faced by borrowers have no significant relationship with loan repayment. The study findings can provide good insights to commercial bank managers in analysing their model of credit risk management system, policies and practices, and in establishing a profitable and sustainable model for credit risk assessment, by setting a risk tolerance level and managing credit risks vis-a-vis the prevailing market competition.

Part II Commercial Banking, 8 The Standardized Approach

2018 ◽  
Author(s):  
Gleeson Simon
Keyword(s):  
High Risk ◽  
Credit Risk ◽  
Financial Institutions ◽  
Risk Mitigation ◽  
Balance Sheet ◽  
Commercial Banking ◽  
Short Term ◽  
Multilateral Development Banks ◽  
Rating Agencies

This chapter focuses on the standardized approach, which is the bedrock of the Basel system. Although many of the largest banks are internal ratings-based banks, there is probably no bank currently existing which does not use some elements of the standardized approach as part of its overall capital calculation. The discussions cover classification of exposures, credit conversion factors, and credit risk mitigation; ratings and rating agencies; exposures to sovereigns; multilateral development banks; exposures to banks and financial institutions; exposures to corporates; exposures to retail customers; commercial mortgage exposures; overdue undefaulted exposures; high-risk exposures; covered bonds; securitization exposures; short-term claims on financial institutions and corporates; fund exposures: and off-balance sheet items.

Technical Risks and Mitigation Measures in Combustion Turbine Project Development

2002 ◽  
Vol 125 (1) ◽  
pp. 228-235 ◽  
Author(s):  
D. Grace ◽  
J. Scheibel
Keyword(s):  
Power Plants ◽  
Development Process ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Life Cycle Costs ◽  
Project Development ◽  
Technical Risk ◽  
Technical Risks ◽  
Interruption Costs ◽  
The Impact

Project developers, insurers, financiers, and maintenance organizations have an interest in quantifying technical risks and evaluating risk mitigation alternatives for combustion turbine (CT) power plants. By identifying exposure to risk early in the project development process, optimal procurement decisions, and mitigation measures can be adopted for improved financial returns. This paper describes a methodology used to quantify all nonfuel O&M costs, including scheduled and unplanned maintenance, and business interruption costs due to unplanned outages. The paper offers examples that demonstrate the impact of technical risk on project profitability. An overview of activities required for addressing technical risk as part of the equipment selection and procurement process is provided, and areas of technical improvements for reducing life cycle costs are described.

Estimating Credit Risk Capital: What's the Use?

2001 ◽  
Vol 2 (3) ◽  
pp. 17-34 ◽  
Author(s):  
PAUL KUPIEC
Keyword(s):  
Credit Risk ◽  
Risk Capital
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