THEORETICAL СONСEPTUАLІZАTІON OF BАNKІNG RІSK MАNАGEMENT

The article explore the theoretical aspects of banking risk management, its purpose, objects, subjects and advantages are singled out. Effective banking risk management should be considered as the main task of banking institutions in their development. From this research of theoretical foundations of banking risk management, we consider it а new direction of scientific research in Ukraine, so the theoretical and methodological developments of these problems are relevant today. In order to solve these problems, we propose to distinguish between «management of banking risks» and «banking risk management». In the research of the theoretical foundations of banking risk management, the interpretation of these basic concepts was proposed. Consequently, the authors proposed defined «management of banking risks» as a process that includes methods and techniques for identifying, assessing, monitoring, controlling and forecasting bank risks, in order to achieve the main objectives of the banks. And «banking risk management» defined as а set of principles, means and forms of management of the bank’s activities related to risks. For the development of the theory of banking risk management the authors proposed identified and characterized his subjects and objects. It is determined that the object is risks of banks and economic relations at risk, and the subject is the employees of the structural units, which, through the application of knowledge, skills, information and financial resources, participate in the management of banking risks. In addition, the advantages of effective risk management in the activities of banks are determined. The lack of research on the theoretical aspects of banking risk management can lead to deepening of theoretical and methodological problems and may negatively affect in the practical activities of banks. Keywords: management of banking risks, banking risk management, bank, subjects and objects of banking risk management. JEL Classification G21, G28 Formulas: 0; fig.: 1; tabl.: 0; bibl.: 12.

Factors Affecting Bank Risks in Vietnam

The research identifies the determinants of credit risk and insolvency risk in the Vietnamese banking sector. Using the data sample of 25 commercial banks over ten years (2008-2017), we examine the relationship between internal variables, external variables, and bank risks. In this study, the independent variables are bank size, bank capitalization, return on asset, return on equity, loan loss provision, capital adequacy ratio, inflation rate, and GDP growth rate. In contrast, non-performing loans and Z-score are the dependent variables. The empirical results show that all factors have an effect on bank risks except liquidity ratio.

DIRECTIONS FOR IMPROVEMENT OF BANKING RISK MANAGEMENT

Banking risks are one of the most important problems of credit institutions, as they have a direct impact on the financial situation of a commercial bank and the entire financial system of our country. This article discusses the essence of banking risk, its types and causes. The reasons for the occurrence of bank risks of both external and internal nature are summarized. The principles of creating an effective risk management system are systematized. Strategic and tactical methods and tools of risk management are summarized. The mandatory elements of improving the efficiency of the bank risk management system are identified.

THE RELATIONSHIP BETWEEN MERGER & ACQUISITION AND BANK RISKS

This study aimed to investigate the relationship between merger & acquisition and bank risks. The sample of the study consisted of 55 commercial banks sector listed on Orbs from (2011-2016). The results of the study showed that there is no relationship between the net benefit and bank`s risk, and also there is no relationship between the capital ratio and bank`s risk, and also there is no relationship between the equity ratio and bank`s risk, that there is a relationship between the capital ratio and bank`s risk. Generally, we note no relationship between the merger & acquisition and banks risk. The recommended of the study recommended that the most important of which are the concentration of banks in general on the level of losses they suffer due to the loans extended to customers and other institutions. JEL: G10; G21; G15 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0729/a.php" alt="Hit counter" /></p>

Bank Risk Profile and Credit Growth in Indonesia

Banks are one of the important industries in a country, whose importance is evidenced by the management of bank risks. The purpose of this research is to investigate the effect or impact of the risk profile disclosure on banking credit growth in Indonesia for the years 2016, 2017, and 2018. Commercial banks in Indonesia, which provide information related to a complete risk profile in the annual report from 2016 to 2018, were selected as the sample. The risk profile variable is an independent variable consisting of credit risk, market risk, and liquidity risk. Panel data regression with E-Views 8 was used for data processing. The results of the study prove that disclosure of credit risk, market risk, and liquidity have significant influences to the banking credit growth in Indonesia. Keywords: risk profile, credit growth, credit risk, market risk, liquidity risk

BANK RISKS AND THEIR REGULATION

The aim of this article is to present the theoretical support of the concepts of risk and profitability and the recent measures which had been taken to regulate them on the background of the recent economic crisis. Risks and performance are interrelated, and a better definition of these concepts constitute the basis of risk management. The analysis of banks performance should be carried out in terms of efficiency, productivity, competitiveness and profitability. Economic and financial instability has prompted central banks and other competent authorities to pay more attention to the vulnerability of banking systems.

Does Risk-Taking Behaviour Matter for Bank Efficiency?

In pursuit of financial intermediation between borrowers and savers banks are exposed to various risks which affect efficiency. Using annual panel data for the period 2010 to 2019, this paper investigates the influence of risk-taking behaviour on bank efficiency in a developing economy. Data envelopment analysis technique was used to obtain the profit efficiency scores of each bank and Tobit regression to estimate the impact of various components of bank risks on profit efficiency. Estimation results established that credit and liquidity risks, significantly influence bank efficiency. Therefore, banks should maintain quality assets and a stable liquidity position as they significantly impact on efficiency.