scholarly journals Evaluating the Relationship Between The Banking System Stability and The Internal Capital Adequacy Assessment Process: Evidence From The Egyptian Banking Sector

2018 ◽  
Author(s):  
Karim Fahmy
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Research Study ◽  
Banking System ◽  
Capital Adequacy ◽  
Assessment Process ◽  
System Stability ◽  
Capital Management ◽  
Internal Capital ◽  
Adequacy Assessment

In the repercussions of the latest financial crisis that have occurred on the years 2008-2009, to fortify the stability of the banking systems, policy makers, and the Basel Committee on Banking Supervision – BCBS, together with national regulators have built up a few safety measures, and structures to guarantee that banks establishments keep up adequate capital levels through using risk management tools, in specific the Internal Capital Adequacy Assessment Processes (ICAAP). They all have called for thorough evaluations and assessments for the structure and components of risk management frameworks, tools, and practices whether by banks, regulators, analysts and risk management experts consistently, to ascertain the adequacy of the banking systems, policies, arrangements and techniques for overseeing risks, and guaranteeing the sufficiency of holding appropriate capital levels for confronting normal, as well as adverse and unexpected situations or emergencies. The main objectives of this research study is to shed the light on the ICAAP as one of the main keys of risk management programs, a process by which banks can use to ensure that they operate with an appropriate levels of capital, forward looking processes for capital planning covering a broad range of risks across banks, activities beyond simple capital management, and brings together risk and capital management activities in a form that can be used to support business decisions. The research study shall evaluate the significant relationship between the Banking System Stability (dependent variable) and the Internal Capital Adequacy Assessment Process (ICAAP – independent variable) with evidence from the Egyptian Banking Sector.

scholarly journals Evaluating the Relationship Between The Banking System Stability and The Internal Capital Adequacy Assessment Process: Evidence From The Egyptian Banking Sector

2018 ◽  
Author(s):  
Karim Fahmy
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Research Study ◽  
Banking System ◽  
Capital Adequacy ◽  
Assessment Process ◽  
System Stability ◽  
Capital Management ◽  
Internal Capital ◽  
Adequacy Assessment

In the repercussions of the latest financial crisis that have occurred on the years 2008-2009, to fortify the stability of the banking systems, policy makers, and the Basel Committee on Banking Supervision – BCBS, together with national regulators have built up a few safety measures, and structures to guarantee that banks establishments keep up adequate capital levels through using risk management tools, in specific the Internal Capital Adequacy Assessment Processes (ICAAP). They all have called for thorough evaluations and assessments for the structure and components of risk management frameworks, tools, and practices whether by banks, regulators, analysts and risk management experts consistently, to ascertain the adequacy of the banking systems, policies, arrangements and techniques for overseeing risks, and guaranteeing the sufficiency of holding appropriate capital levels for confronting normal, as well as adverse and unexpected situations or emergencies. The main objectives of this research study is to shed the light on the ICAAP as one of the main keys of risk management programs, a process by which banks can use to ensure that they operate with an appropriate levels of capital, forward looking processes for capital planning covering a broad range of risks across banks, activities beyond simple capital management, and brings together risk and capital management activities in a form that can be used to support business decisions. The research study shall evaluate the significant relationship between the Banking System Stability (dependent variable) and the Internal Capital Adequacy Assessment Process (ICAAP – independent variable) with evidence from the Egyptian Banking Sector.

Maintaining Financial Stability in the Banking Sector

2019 ◽  
pp. 30-48
Author(s):  
Meltem Gurunlu
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Basel Accords ◽  
Risk Management System ◽  
Strategic Approach ◽  
Global World

Maintaining financial stability in the banking sector through a well-functioning risk management system is a strategic approach in today's global world where the risks have become much more diversified than ever. This chapter was undertaken in order to investigate the risk management topic by focusing on the experiences learned from the banking crises up-to-date and implications of the Basel Accords which outlined capital adequacy standards to prevent such crises. With paying special attention to the case of Turkish banking system, main challenges and possible solutions are also discussed.

scholarly journals Building Vulnerability Predictive Indicator for the Banking Sector

2020 ◽  
Vol 9 (3) ◽  
pp. 01-14
Author(s):  
Maria Afreen
Keyword(s):  
Risk Management ◽  
Business Strategy ◽  
Banking Sector ◽  
Risk Measures ◽  
Banking System ◽  
Capital Adequacy ◽  
Building Vulnerability ◽  
Regulatory Requirements ◽  
Return On Equity ◽  
Economic Vulnerability

Abstract For risk and capital measurement, banks and other financial institutions need to meet forthcoming regulatory requirements. However, it is a serious issue to think that meeting regulatory requirements is the sole or even the most important reason for establishing a scientific, sound risk management system. To direct capital to activities with the best risk/reward ratios, managers need reliable risk measures. To stay within the limits imposed by readily available liquidity, by creditors, customers, and regulators, they need estimates of the size of potential losses. They need mechanisms to monitor positions and create incentives for prudent risk-taking by divisions and individuals. Risk measurement deals with the quantification of risk exposures, whereas risk management refers to the overall process by which managers satisfy these needs and follows to define a business strategy, to detect the risks to which are visible, quantifying those risks, and to control and understand the nature of the risks it faces. This research focuses on the economic vulnerability faced by banks in the financial sector in terms of the crises issues perspective of economic distress. Here, the methodology followed is based on the CAMELS framework variables. CAMELS is an abbreviation for: capital adequacy (C), asset (A), management (M), earnings (E), liquidity (L) and sensitivity to market risk (S). Based on these terminologies, a couple of variables should be selected, such as capital asset ratio, non-performing loan, cost income ratio, industry production index, non-interest income, reserve of gold, inflation, stock turnover ratio, real interest rate as component series and return on equity (RoE) as reference series to identify the turning points of economic vulnerability in the banking sector in Bangladesh. Thus, by forecasting the directional changes it could make policymakers aware of changes in the financial markets and banking economy and allow them to undertake preventive steps for remedial purposes. The constructed MPI should have a remarkable lead time of about not less than 6 months on average in case of prediction against the leading for reference Series.By mending the financial efficacy of investment banks. Bangladesh also should improve their corresponding banking system to implement these suggestions.  

A New Barrier for the Future of Energy Market in Turkey

2017 ◽  
pp. 178-196 ◽  
Author(s):  
Esin Okay
Keyword(s):  
Banking System ◽  
Banking Regulation ◽  
Capital Adequacy ◽  
Assessment Process ◽  
Energy Market ◽  
Early Adoption ◽  
Capital Adequacy Ratio ◽  
Energy Projects ◽  
Adequacy Assessment ◽  
Banking Regulation And Supervision

The Banking Regulation and Supervision Agency (BRSA) in Turkey has implemented a risk based framework since 2006, making bold moves of resulted in a stellar increase of capital adequacy in Turkish Banking System. But the enactment of the new law for the Internal capital adequacy assessment process (ICAAP) is evaluated as being quite an early adoption. The Bank for International Settlements (BIS) points that Turkey has early-adopted the implementation recommending further discussions for a reconsideration of the target capital adequacy ratio. The banks have already found it difficult to follow up high capital adequacy especially while financing energy projects, as the Turkish Banking system is preparing for the requirements of Basel III framework. Under the new regulation, the ICAAP is expected to decrease the capital adequacy of banks in Turkey. Meanwhile, the challenge in adopting ICAAP can be an additional barrier standing in the way to the development of energy market.

A New Barrier for the Future of Energy Market in Turkey

2017 ◽  
pp. 1585-1603
Author(s):  
Esin Okay
Keyword(s):  
Banking System ◽  
Banking Regulation ◽  
Capital Adequacy ◽  
Assessment Process ◽  
Energy Market ◽  
Early Adoption ◽  
Capital Adequacy Ratio ◽  
Energy Projects ◽  
Adequacy Assessment ◽  
Banking Regulation And Supervision

The Banking Regulation and Supervision Agency (BRSA) in Turkey has implemented a risk based framework since 2006, making bold moves of resulted in a stellar increase of capital adequacy in Turkish Banking System. But the enactment of the new law for the Internal capital adequacy assessment process (ICAAP) is evaluated as being quite an early adoption. The Bank for International Settlements (BIS) points that Turkey has early-adopted the implementation recommending further discussions for a reconsideration of the target capital adequacy ratio. The banks have already found it difficult to follow up high capital adequacy especially while financing energy projects, as the Turkish Banking system is preparing for the requirements of Basel III framework. Under the new regulation, the ICAAP is expected to decrease the capital adequacy of banks in Turkey. Meanwhile, the challenge in adopting ICAAP can be an additional barrier standing in the way to the development of energy market.

scholarly journals Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

2021 ◽  
Vol 13 (10) ◽  
pp. 5535
Author(s):  
Marco Benvenuto ◽  
Roxana Loredana Avram ◽  
Alexandru Avram ◽  
Carmine Viola
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Research Question ◽  
Interactive Effect ◽  
Banking System ◽  
Capital Adequacy ◽  
Banking Systems ◽  
Governance Index ◽  
The Impact

Background: Our study aims to verify the impact of corporate governance index on financial performance, namely return on assets (ROA), general liquidity, capital adequacy and size of company expressed as total assets in the banking sector for both a developing and a developed country. In addition, we investigate the interactive effect of corporate governance on a homogenous and a heterogeneous banking system. These two banking systems were chosen in order to assess the impact of corporate governance on two distinct types of banking system: a homogenous one such as the Romanian one and a heterogeneous one such as the Italian one. The two systems are very distinct; the Romanian one is represented by only 34 banks, while the Italian one comprises more than 350 banks. Thus, our research question is how a modification in corporate governance legislation is influencing the two different banking systems. The research implication of our study is whether a modification in legislation, thus in the index of corporate governance, is feasible for two different banking sectors and what the best ways to increase the financial performance of banks are without compromising their resilience. Methods: Using survey data from the Italian and Romanian banking systems over the period 2007–2018, we find that the corporate governance has a significant, positive and long-lasting effect on profitability and capital adequacy in both countries. Results: Taking the size of the company into consideration, the impact of the Index of Corporate Governance (ICG) on a homogenous banking system is positive while the impact on a heterogeneous banking system is negative. Conclusions: Our study provides evidence of the impact of IGC on financial performance and sheds light on the importance of the size of the company. Therefore, one can state that the corporate governance principles applied do not encourage the growth of large banks in heterogeneous banking sectors, thereby suggesting new avenues of research associated with new perspectives.

scholarly journals Statistical analysis of the use an internal capital adequacy assessment procedure in the monitoring of banks stability

2020 ◽  
Author(s):  
Victoria V. Baronova ◽  
Alexander N. Nizov ◽  
Viktoria F. Turygina ◽  
Marina A. Medvedeva ◽  
T. O. Zagornaya ◽  
...  
Keyword(s):  
Statistical Analysis ◽  
Capital Adequacy ◽  
Assessment Procedure ◽  
Internal Capital ◽  
Adequacy Assessment
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