Analyzing banking risk: a framework for assessing corporate governance and financial risk management
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Washington, DC
World Bank
2000
|
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XV, 289 S. graph. Darst. 1 CD-ROM (12 cm) |
| ISBN: | 082134417X |
Staff View
MARC
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Record in the Search Index
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|---|---|
| adam_text | Contents
Foreword xm
Acknowledgments xv
1 Analyzing Banking Risk 1
1.1 Introduction: The Changing Bank Environment 7
1.2 Bank Exposure to Risk 3
1.3 Corporate Governance 4
1.4 Risk Based Analysis of Banks 7
1.5 Analytical Tools Provided 77
2 A Context for the Risk Based Review of Banks 75
2.1 Introduction: Why Banks Are Analyzed 75
2.2 Banks as Providers of Financial Information 17
2.3 A Framework for Financial Sector Development 78
2.4 A Holistic View of the Entire Financial System 24
2.5 Disclosure and Transparency of Bank Financial Statements:
A Prerequisite for Risk Based Analysis 27
3 Key Players in the Corporate Governance and
Risk Management Process 31
3.1 Introduction: Financial Risk Management and
the Responsibilities of Key Players 31
V
vi ANALYZING BANKING RISK
3.2 Regulatory Authorities: Establishing a Corporate
Governance and Risk Management Framework 32
3.3 Supervisory Authorities:
Monitoring Risk Management 34
3.4 The Shareholders 37
3.5 The Board of Directors: Ultimate Responsibility
for a Bank s Affairs 40
3.6 Management: Responsibility for Bank Operations and the
Implementation of Risk Management Policies 45
3.7 The Audit Committee and Internal Auditors: An Extension
of the Board s Risk Management Function 50
3.8 External Auditors: A Reassessment of the Traditional
Approach to Auditing Banks 52
3.9 The Role of the General Public 54
4 Balance Sheet Structure and Management 59
4.1 Introduction: Composition of the Balance Sheet 59
4.2 Asset Structure: Growth and Changes 62
4.3 Liabilities Structure: Growth and Changes 67
A A Overall On and Off Balance Sheet Growth 71
4.5 Asset/Liability Management: Planned Changes in the
Balance Sheet Structure 76
4.6 Managing Risk Effectively 78
5 Profitability 83
5.1 Introduction: The Importance of Profitable Banks 83
5.2 Income Statement Composition 85
5.3 Income Structure and Profit Quality 92
5.4 Profitability Indicators 98
5.5 Profitability Ratio Analysis 101
6 Capital Adequacy 105
6.1 Introduction: The Characteristics and Functions
of Capital 105
6.2 Constituents of Capital 108
6.3 Bank Risk Profiles and Risk Weights 110
CONTENTS vii
6.4 Capital Adequacy Requirements 115
6.5 Capital Adequacy Assessment 118
7 Credit Risk Management 125
7.1 Introduction: Components of Credit Risk 125
12 Credit Portfolio Management 126
7.3 Review of Lending Function and Operations 130
7.4 Credit Portfolio Quality Review 132
7.5 Nonperforming Loan Portfolio 137
7.6 Credit Risk Management Policies 141
1.1 Policies to Limit or Reduce the Credit Risk 144
7.8 Asset Classification 750
7.9 Loan Loss Provisioning Policy 154
8 Liquidity Risk Management 157
8.1 Introduction: The Need for Liquidity 757
8.2 Liquidity Management Policies 755
8.3 The Regulatory Environment 767
8.4 The Structure of Funding: Deposits and
Market Borrowing 164
8.5 Maturity Structure and Funding Mismatches 766
8.6 Deposit Concentration and Volatility of Funding 170
8.7 Liquidity Risk Management Techniques 777
9 Interest Rate Risk Management 177
9.1 Introduction: Sources of Interest Rate Risk 7 77
9.2 Risk Management Responsibilities 779
9.3 Models for the Management of Interest Rate Risk 181
9.4 The Impact of Changes in Forecast Yield Curves 785
10 Market Risk Management 189
10.1 Introduction: Market Risk Characteristics 189
10.2 Market Risk Management Policies 191
10.3 Investment Portfolio Selection and Management 194
10.4 Trading Book and Management of
Trading Activities 799
viii ANALYZING BANKING RISK
10.5 Market Risk Measurement 202
10.6 Stress Testing 206
10.7 Operational Aspects of Market Risk Management 207
11 Currency Risk Management 211
11.1 Introduction: Origin and Components
of Currency Risk 211
11.2 Policies for Currency Risk Management 213
11.3 Currency Risk Exposure and Business Strategy 220
11.4 Currency Risk Management and Capital Adequacy 224
12 Transparency in the Financial Statements of Banks 231
12.1 Introduction: The Importance of Useful Information 231
12.2 Transparency and Accountability 233
12.3 Transparency in Financial Statements 235
12.4 Disclosure in the Financial Statements of Banks 237
12.5 Deficiencies Found in Bank Accounting Practices 240
12.6 Recent Developments: Fair Value Accounting
and Disclosure 241
13 The Relationship between Risk Analysis and
Bank Supervision 251
13.1 Introduction: The Bank Supervisory Process 251
13.2 The Analytical Review Process 252
13.3 Banking Risks and the Accountability of
Regulatory/Supervisory Authorities 257
13.4 The Supervisory Process 260
13.5 Consolidated Supervision 266
Appendix General Background Questionnaire 271
Boxes
3.1 A New Philosophy of Bank Supervision 36
3.2 The Role of the Board 41
3.3 The Board s Financial Risk Management
Responsibilities 43
CONTENTS ix
3.4 The Importance of Bank Management 46
3.5 Fit and Proper Standards for Bank Management 47
3.6 Financial Risk and Management Responsibilities 49
3.7 Internal Audit Controversies 57
3.8 The Responsibilities of Audit Committees and
Internal Auditors 53
3.9 Financial Risk Management Responsibilities of
External Auditors 54
7.1 Content of a Loan Review File 133
7.2 Signs of Distorted Credit Culture 140
7.3 Asset Classification Rules 752
Figures
1.1 The Banking Risk Spectrum 4
1.2 Partnership in Corporate Governance of Banks 6
2.1 A Framework for Financial Sector Development 20
2.2 Holistic View of the Financial System: A Template
for Financial Sector Review 25
4.1 Balance Sheet Components 61
4.2 Structural Change and Growth of Assets 63
4.3 Changes in the Structure of a Bank s Assets Portfolio 64
4.4 Structural Change and Growth of Capital and Liabilities 68
4.5 Total Growth 73
4.6 Low and Nonearning Assets as a Percentage of Total Assets 75
4.7 Off Balance Sheet Items as a Percentage of Total Assets 75
4.8 Changes in the Structure of a Bank s Assets Portfolio 79
4.9 Changes in the Structure of a Bank s Liabilities and Capital 79
5.1 Structure of Gross Income 93
5.2 Assets versus Income Structure 94
5.3 Sources of Income versus Costs 95
5.4 Operating Income Ratios 96
5.5 Average Yield Differential on Intermediation Business 702
5.6 Return on Assets (ROA) and on Equity (ROE) 103
6.1 Components of Shareholders Funds 779
6.2 Risk Profile of Assets 720
6.3 Risk Profile of On and Off Balance Sheet Items 727
x ANALYZING BANKING RISK
6.4 Capital Adequacy 123
6.5 Potential Capital Situation 124
1.1 Loans to Customers per Borrower Group 136
7.2 Customer Loans by Product 136
7.3 Maturity of Loans to Customers 137
7.4 Loan Portfolio Statistics 139
7.5 Exposure to the 20 Largest Borrowers 146
7.6 Sectoral Analysis of Loans 149
7.7 Classification of Loans 153
8.1 Statutory Liquidity Required versus
Actual Liquid Assets Held 162
8.2 Customer Deposits by Sector 166
8.3 Maturity Mismatch 167
8.4 Maturities of Deposits Payable in Local Currency 169
8.5 Ten Largest Sources of Deposits as Percentage of Total
Customers Deposits 170
8.6 Liquidity Statistics 174
9.1 Current and Forecast Yield Curves 186
9.2 Potential Effect on Capital Due to a Movement
in Expected Yield Curve 186
10.1 Structure of Investment Portfolio 196
10.2 Trading Portfolio 200
10.3 Potential Amount of Qualifying Capital Exposed 208
10.4 Investment (Market versus Book Value) 208
11.1 Currency Structure of Assets and Liabilities 221
11.2 Currency Structure of Loan Portfolio and
Customer Deposits 222
11.3 Freely Convertible Currency Deposit Maturities
as Percentage of Total Customer Deposits 228
11.4 Currency Risk Exposure as Percentage
of Qualifying Capital 229
12.1 Transparency in Financial Statements 238
13.1 The Context of Bank Supervision 253
13.2 The Banking Risk Spectrum 258
CONTENTS xl
Tables
1.1 Summary of Financial Risks Covered in this Publication 10
1.2 Possible Uses of Tools Provided 14
3.1 Key Players and Their Responsibilities in
Bank Governance and Risk Management 32
3.2 Shareholder Information 39
3.3 Supervisory Board/Board of Directors 44
4.1 A Bank s Balance Sheet Structure 62
4.2 Total Growth of Balance Sheet and Off Balance Sheet Items 73
5.1 Composition of Income and Expenses 86
5.2 Profitability Ratios 99
6.1 Multiplication Factors for Derivative Instruments 113
6.2 Illustration of Risk Weights Based on External Ratings 115
6.3 Capital Adequacy Ratios 122
7.1 Loan Portfolio Statistics 138
7.2 Related Party Lending 148
7.3 Recommended Provisions 156
8.1 Maturity Ladder under Alternative Scenarios 172
8.2 Liquidity Position 775
9.1 A Repricing Gap Model for Interest Rate Risk Management 182
10.1 Review of Net Open Positions 204
11.1 Open Positions in Foreign Currencies 226
12.1 Disclosure in Financial Statements, by Risk Category 242
12.2 Deficiencies Found in Accounting Practices 248
13.1 Stages of the Analytical Review Process 254
13.2 Contents of Off site and On site Analytical Reports 255
13.3 Off site Surveillance versus On site Examination 263
13.4 Alternative Audit Processes per ISA 266
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| indexdate | 2024-07-09T19:14:17Z |
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| isbn | 082134417X |
| language | English |
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| spelling | Greuning, Hennie van Verfasser aut Analyzing banking risk a framework for assessing corporate governance and financial risk management Hennie van Greuning ; Sonja Brajovic Bratanovic Washington, DC World Bank 2000 XV, 289 S. graph. Darst. 1 CD-ROM (12 cm) txt rdacontent n rdamedia nc rdacarrier Bank management Corporate governance Risk management Bank (DE-588)4004436-1 gnd rswk-swf Corporate Governance (DE-588)4419850-4 gnd rswk-swf Risikomanagement (DE-588)4121590-4 gnd rswk-swf Bank (DE-588)4004436-1 s Risikomanagement (DE-588)4121590-4 s DE-604 Corporate Governance (DE-588)4419850-4 s DE-188 Brajovic Bratanovic, Sonja Verfasser aut HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=010337497&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Greuning, Hennie van Brajovic Bratanovic, Sonja Analyzing banking risk a framework for assessing corporate governance and financial risk management Bank management Corporate governance Risk management Bank (DE-588)4004436-1 gnd Corporate Governance (DE-588)4419850-4 gnd Risikomanagement (DE-588)4121590-4 gnd |
| subject_GND | (DE-588)4004436-1 (DE-588)4419850-4 (DE-588)4121590-4 |
| title | Analyzing banking risk a framework for assessing corporate governance and financial risk management |
| title_auth | Analyzing banking risk a framework for assessing corporate governance and financial risk management |
| title_exact_search | Analyzing banking risk a framework for assessing corporate governance and financial risk management |
| title_full | Analyzing banking risk a framework for assessing corporate governance and financial risk management Hennie van Greuning ; Sonja Brajovic Bratanovic |
| title_fullStr | Analyzing banking risk a framework for assessing corporate governance and financial risk management Hennie van Greuning ; Sonja Brajovic Bratanovic |
| title_full_unstemmed | Analyzing banking risk a framework for assessing corporate governance and financial risk management Hennie van Greuning ; Sonja Brajovic Bratanovic |
| title_short | Analyzing banking risk |
| title_sort | analyzing banking risk a framework for assessing corporate governance and financial risk management |
| title_sub | a framework for assessing corporate governance and financial risk management |
| topic | Bank management Corporate governance Risk management Bank (DE-588)4004436-1 gnd Corporate Governance (DE-588)4419850-4 gnd Risikomanagement (DE-588)4121590-4 gnd |
| topic_facet | Bank management Corporate governance Risk management Bank Corporate Governance Risikomanagement |
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