金融风险管理 Chap014

16-7
Impact on Wholesale Banking
Improvements to cash management: Controlled disbursement accounts Account reconciliation Wholesale lockbox Electronic lockbox Funds concentration Electronic funds transfer Check deposit services Electronic initiation of letters of credit
16-8
Impact on Wholesale Banking (continued)
Treasury management software Electronic data interchange Facilitating B2B e-commerce Electronic billing Verifying identities
16-10
Effects of Technology on Revenues & Costs
Investments in technology are risky
Potentially negative NPV projects due to uncertainty and potential competitive responses
Potential agency conflicts:
▪ Growth-oriented investments may not maximize shareholder’s value
▪ Losses on technological investments can weaken an FI
16-11
Noninterest expenses can be reduced
Through improved efficiency of back office operations using technology.
▪ Especially true for securities-related activities.
Issue of law enforcement access to encrypted data since September 11, 2001
Assisting small business entry into ecommerce
16-9
Impact on Retail Banking
Chapter 16
Technology and Other Operational
Risks
16-2
Overview
This chapter discusses the factors affecting operational returns and risks, and the importance of optimal management and control of labor, capital, and other input sources and their costs. The emphasis is on technology and its impact on risk and return.
16-4
Importance of Technology
Efficient technological base can result in:
Lower costs
▪ Thro of inputs.
Increased revenues
▪ Through wider range of outputs.
Examples: Risks resulting from innovations in IT, and effects of terrorist attacks on key technologies.
16-3
Sources of Operational Risk
Technology Employees Customer relationships Capital assets External
Effects of Technology on Revenues & Costs
Evidence shows the impact of regulation on value of technological innovations.
Automated teller machines Point-of-sale debit cards Home banking Preauthorized debits/credits Pay-by-phone E-mail billing Online banking Smart cards
Interest income can be increased
Through wider array of outputs or cross selling.
Interest expense can be decreased
Through improved access to markets for liabilities
▪ Fedwire, CHIPS
16-6
Impact of Technology
Other income can be increased
Through electronic handling of fee generating OBS activities such as LCs and derivatives
Earnings before taxes = (Interest income Interest expense) + (Other income - Noninterest expense) - Provision for loan losses
16-5
Impact of Technology