scholarly journals The Effects of Extreme Political Acts and Political Risk on International Banking Systems

2007 ◽  
Author(s):  
John L. Simpson
Keyword(s):  
Political Risk ◽  
International Banking ◽  
Banking Systems

EXPERT POLITICAL RISK OPINIONS AND BANKING SYSTEM RETURNS EXPERT POLITICAL RISK OPINIONS AND BANKING SYSTEM RETURNS

2007 ◽  
Vol 5 (1) ◽  
Author(s):  
John Simpson
Keyword(s):  
Stock Returns ◽  
Human Behavior ◽  
Banking System ◽  
Political Risk ◽  
Market Model ◽  
Risk Scores ◽  
International Banking ◽  
Regulatory Capital ◽  
Banking Systems ◽  
Social And Cultural Factors

Human behavior in banking and financial systems is in part made up of a complex mix of political, social and cultural factors. These factors are reflected in expert opinion based political risk scores. Market inefficiency is largely a result of anomalies in human behavior causing information asymmetries. A basic systemic market model is re-specified into a model for international banking systems, which controls for pure political risk. Samples of developed and developing banking systems are examined. Political risk factors and world banking returns are exogenous in models of countrybanking system returns. New political information assists in explaining banking system stock returns. The findings should be of interest to investors in banking stocks. Banking regulators may be assisted in decisions on appropriate levels of regulatory capital as a benchmark for banking systems. The model could help to anticipate financial crises.

Benchmarking and crosschecking international banking economic and regulatory capital

2005 ◽  
Vol 13 (1) ◽  
pp. 65-79 ◽  
Author(s):  
John L. Simpson ◽  
John Evans
Keyword(s):  
Banking System ◽  
Performance Model ◽  
Capital Adequacy ◽  
Future Research ◽  
Informational Efficiency ◽  
International Banking ◽  
Regulatory Capital ◽  
Loan Loss ◽  
Banking Systems ◽  
Loan Loss Provisions

The purpose of this paper is to provide banking regulators with another tool to crosscheck the appropriateness and consistency of levels of capital adequacy for banks. The process begins by examining banking systems and focuses on market risks and the systemic risks associated with growing global economic integration and associated systemic interdependence. The model provides benchmarks for economic and regulatory capital for international banking systems using country, regional and global stock‐market generated price index returns data. The benchmarks can then be translated to crosschecking capital levels for banks within those systems. For analytical purposes systems are assumed to possess a degree of informational efficiency and credit, liquidity and operational risks are held constant or at least assumed to be covered in loan loss provisions. An empirical study is included that demonstrates how market risk and systemic risk can be accounted for in a benchmark banking system performance model. Full testing of the model is left for future research. The paper merely proposes that such an approach is feasible and useful and it is in no way intended to be a replacement for the current Basel Accord.

Reinforcing the cyber resilience of a credit institution in Industry 4.0

2020 ◽  
Vol 16 (6) ◽  
pp. 998-1012
Author(s):  
G.V. Fedotova ◽  
D.D. Tkachenko
Keyword(s):  
Content Analysis ◽  
Public Administration ◽  
Data Security ◽  
Industry 4.0 ◽  
Credit Institution ◽  
Security Systems ◽  
Banking Systems ◽  
It Systems ◽  
Smart Technologies ◽  
Banking Development

Subject. The article discusses the modeling of preventive protection of IT systems and evaluates their cyber resilience. Objectives. The study evaluates the existing threats and determines how informatization processes may unfold in the credit segment. Methods. Research is based on methods of regulatory and legislative analysis. We evaluate today’s public administration of cybersecurity in the financial and credit sector. To give a view of the existing situation and sum up the sector’s performance for the recent years, we performed the content analysis of statistics on data hacking and leakages. Results. The article highlights new trends in the financial and credit sector and the growing complexity of data security systems. As proposed by the Bank of Russia, the integration of smart technologies is showed to reinforce the cybersecurity of banking systems. Conclusions and Relevance. The informatization of all banking operation systems, growing complexity of procedures and work logs require new robust resources to be integrated into financial technologies. Stronger cybersecurity should lay a trend in the financial and credit sector in the nearest future. The findings can be used to flag strategic milestones of the banking development in the information-driven society.

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