商业银行风险管理外文及翻译
商业银行操作风险管理指引英文
Guidelines on Operational Risk Management of CommercialBanksChapter I General ProvisionsArticle 1 Pursuant to the Law of the People’s Republic of China on Banking Regulation and Supervision, the Law of the People’s Republic of China on Commercial Banks as well as other applicable laws and regulations, the Guidelines are formulated so as to enhance the operational risk management of commercial banks.Article 2 The Guidelines apply to domestic commercial banks, wholly foreign-funded banks and Chinese-foreign joint venture banks incorporated within the territory of the People’s Republic of China.Article 3 The operational risk in the Guidelines refers to the risk of loss resulting from inadequate or failed internal processes, people and IT system, or from external events. It includes legal risk but excludes strategic and reputational risk.Article 4 The China Banking Regulatory Commission (hereinafter referred to as the “CBRC”) supervises and regulates the operationalrisk management of commercial banks and evaluates the effectiveness thereof under its authority by law.Chapter II Operational Risk ManagementArticle 5 Commercial banks should, in line with the Guidelines, set up an operational risk management system suitable to their own business nature, scale and complexity to effectively identify, assess, monitor and control/mitigate operational risk. This system can be in any form, but should comprise at least the following basic elements:1)oversight and control by the board of directors;2)roles and responsibilities of senior management;3)appropriate organizational structure;4)operational risk management policies, methods, and procedures;and5)requirements on making capital provisions for operational risk.Article 6 The board of directors in a commercial bank should treat operational risk as a major risk and charge the ultimate responsibility for monitoring the effectiveness of operational risk management. The responsibilities of the board shall include:1) developing strategies and general policies for bank-wideoperational risk management that are aligned with the bank’sstrategic goals;2) reviewing and approving the senior management’s functions,authorization and reporting arrangement with regard to operational risk management so as to ensure the effectiveness of the bank’s decision-making system in operational risk management and ensure that the operational risk facing thebank’s operations is controlled within its endurance capacity; 3) reviewing regularly the operational risk reports submitted by thesenior management; fully understanding the bank’s overall operational risk management and the effectiveness of the senior management in handling material operational risk events; and monitoring and evaluating the effectiveness of daily operationalrisk management;4) ensuring that the senior management takes necessary measuresto effectively identify, assess, monitor and control/mitigateoperational risk;5) ensuring that the bank’s operational risk m anagement system iseffectively audited and overseen by internal audit department;and6) having in place an appropriate reward-punishment system so asto effectively promote the development of operational risk management system in the bank as a whole.Article 7 The senior management in a commercial bank isresponsible for implementing the operational risk management strategies, general policies and running the system approved by theboard. It shall:1) be ultimately responsible to the board regarding daily operationalrisk management;2) lay out and regularly review the operational risk managementpolicies, procedures and detailed processes in accordance with the strategies and general policies developed by the board, and oversee the implementation thereof, and submitting to the board reports on overall operational risk management in a regularmanner;3) sufficiently understand the overall situation of the bank’soperational risk management, particularly the events or programswith material operational risk;4) Clearly define each department’s responsibilities in operationalrisk management as well as the reporting line, frequency andcontents; urge each department to really charge its responsibilities in a bid to ensure the sound performance of theoperational risk management system;5) equip operational risk management with appropriate resources,including but not limited to providing necessary funds, setting up necessary positions with eligible staff, offering training courses to operational risk management personnel, delegating authorizaion to the said personnel to fulfill their duties, etc.; and6) make promptly checks and revision on the operational riskmanagement system so as to effectively respond to operational risk events brought about by the changes of internal procedures, products, business activities, IT system, staff, external events orother factors.Article 8 Commercial banks should designate a certain department to be responsible for the construction and implementation of operational risk management system. This department should be independent from others in order to ensure the system’s consistency and effectiveness. Its responsibilities shall mainly include:1) drafting operational risk management policies, procedures andspecific processes and submitting them to the senior management and the board for review and approval;2) assisting other departments to identify, assess, monitor andcontrol/mitigate operational risk;3) working out methods to identify, assess, mitigate (includinginternal controls) and monitor operational risks, formulating bank-wide reporting processes of operational risk and organizingthe implementation thereof;4) putting in place basic criteria for operational risk control over thebank, and guiding and coordinating the operational riskmanagement;5) providing each department with trainings on operational riskmanagement, and helping them improve operational risk management capacity and fulfill their own duties;6) regularly checking and analyzing the practices of operational riskmanagement in business departments and other departments;7) regularly submitting operational risk reports to seniormanagement; and8) ensuring that the operational risk management system andmeasures are observed.Article 9 The relevant departments in a commercial bank should be directly responsible for operational risk management. Majorresponsibilities include:1) appointing designated staff to take charge of operational riskmanagement, including observing operational risk management policies, procedures and specific processes;2) following the assessment methods for operational riskmanagement to identify and assess the operational risks in the departments, and to have in place an effective on-going procedure to monitor, control/mitigate and report operational risks, thenorganize the implementation thereof;3) fully considering the requirements on operational riskmanagement and internal control when making department specific business processes and related business policies, with a view to ensuring operational risk management personnel at alllevels participate in the course of reviewing and approvingimportant procedures, controls and policies, thus making these aligned with the bank’s general policy on operational riskmanagement; and4) monitoring key risk indicators and regularly reporting their owndepartment’s operational risk management situation to thedepartment which takes charge of or take the leading role in operational risk management of the whole bank.Article 10 The legal office, compliance office, IT office, security office, and human resource office in a commercial bank should, besides properly managing their own operational risks, provide relevant resources and assistance within their strength and respective responsibilities to other departments for the purpose of operationalrisk management.Article 11 The internal audit department in a commercial bank does not directly take charge of or participate in other departments’ operational risk management, but it should regularly check and evaluate how well the bank’s operational risk management system operates, supervise the implementation of operational riskmanagement policies, independently evaluate the bank’s newoperational risk management policies, processes and specific procedures, and report to the board of directors the evaluation results of operational risk management system.A commercial bank with high business complexity and large scale is encouraged to entrust intermediary agencies to audit and evaluate its operational risk management system on a regular basis.Article 12 A commercial bank should have in place bank-wide operational risk management policies that are commensurate with its nature, scale, complexity and risk profile. Main contents include:1) definition of operational risk;2) appropriate organizational structure, authorization andresponsibilities with regard to operational risk management;3) procedures to identify, assess, monitor and control/mitigateoperational risks;4) reporting procedures of operational risk, including reportingresponsibilities, path and frequency, and other specificrequirements on other departments; and5) requirements on promptly assessing operational risks associatedwith existing and newly-developed important products, business practices, procedures, IT system, human resource management,external factors and changes thereof.Article 13 A commercial bank should choose appropriate approaches to manage operational risks, which may include: assessment of operational risk and internal control, loss event reporting and data collection, monitoring of key risk indicators, risk assessment regarding new products and business practices, testing and audit of internal control, and operational risk reporting.Article 14 A commercial bank with high business complexity and large scale should adopt more sophisticated risk management methods (e.g. quantitative methods) to assess each department’s operational risk, collect operational risk loss data, and make arrangements according to the characteristics of operational riskassociated with each line of business.Article 15 A commercial bank should develop effective processes to regularly monitor and report operational risk status and material losses. As to risks with increasing loss potential, early-warning system of operational risk should be put in place so as to take timely controls to mitigate risk and reduce the occurrence and severity ofloss events.Article 16 Material operational risk events should be reported to the board, senior management and appropriate management personnel according to the bank’s operational risk management policies.Article 17 A commercial bank should enhance internal control for effective operational risk management. Related internal controlsshould at least include:1) clearly defining the roles and responsibilities of each departmentand making proper separation among relevant functions so as toavoid potential conflicts of interests;2) closely watching how well specified risk limit or authorization isobserved;3) monitoring the records of access to and use of the bank’s assets;4) ensuring the staff are appropriately trained and eligible for theirpositions;5) identifying the business activities or products that do not generatereasonable prospective returns or that contain potential risks;6) regularly reviewing and checking up transactions and accounts;7) putting in place a system for the heads and the staff in keypositions to have job rotation and compulsory leaves and setting up a mechanism of off-job auditing as well;8) working out a code of conduct to regulate on-job and off-jobbehavior particularly for the staff in important positions or atsensitive links;9) establishing an incentive and protection system to encouragestaff to report violations on a real-name basis;10) setting up a dual-appraisal system to investigate and solve bankfraudulent cases as well as make punishments in a timely andproper manner;11) having in place an information disclosure system for the bankcase investigation; and12) e stablishing an incentive-restrictive mechanism with regard to themanagement and control of operational risk at front line.Article 18 A commercial bank should establish and gradually improve the operational risk management information system (MIS) so as to effectively identify, assess, monitor, control and report operational risks. The system should at least record and store the date about operational risk losses and events, support self-assessment on operational risk and control measures, monitor key risk indicators, and provide relevant information contained in operational riskreports.Article 19 To ensure business continuation, a commercial bank should develop a scheme for emergency response that matches their business scale and complexity, make a back-up arrangement for service recovery, and regularly check and test the catastrophe recovery function and business continuation mechanism so as to make sure that these actions can go in operation properly in the event of catastrophe and severe business disruption.Article 20 A commercial bank should develop risk management policies with regard to outsourcing practices in order to make sure that outsourcing is subject to rigorous contracts and service agreements which clearly specify the obligations of involved parties.Article 21 A commercial bank may purchase insurance and enter into contract with a third party, and consider it a way to mitigate operational risk. But they should by no means neglect the importanceof controls.A commercial bank that mitigates operational risks by means ofinsurance should formulate written policies and proceduresaccordingly.Article 22 A commercial bank should make adequate capitalprovisions for the operational risk it undertakes as per the requirements of CBRC on capital adequacy of commercial banks.Chapter III Supervision of Operational RiskArticle 23 Commercial banks should submit to the CBRC their operational risk management policies and processes for filing. They should submit operational risk related reports to the CBRC or its local offices as per regulations. Banks that entrust intermediary agencies to audit their operational risk management system should also submit audit reports to the CBRC or its local offices.Article 24 Commercial banks should promptly report to the CBRC or its local offices about the following material operational risk events ifany:1) banking crimes in which more than RMB300,000 is robbed from acommercial bank or cash truck or stolen from a banking financial institution; bank fraud or other cases involving an amount of morethan RMB10 million;2) events that result in serious damage or loss of the bank’simportant data, books, blank vouchers, or business disruption for over three hours in two or more provinces (autonomous regions/municipalities), or business disruption for over six hours in one province (autonomous region/municipality) and severelyaffect the bank’s normal operations;3) confidential information being stolen, sold, leaked or lost that mayaffect financial stability and lead to economic disorder;4) senior executives severely violating applicable regulations;5) accident or natural catastrophe caused by force majeure, resultingin immediate economic loss of more than RMB10 million;6) other operational risk events that may result in a loss of more than1‰ of the bank’s net capital; and7) other material events as specified by the CBRC.Article 25 The CBRC should regularly check and assess the operational risk management policies, processes and practices of commercial banks. Main items to be checked and assessed include:1) effectiveness of the bank’s operational risk managementprocesses;2) the bank’s approaches to monitor and report operational risks,including key operational risk indicators and operational risk lossdata;3) the bank’s measures to timely and effectively handle operationalrisk events and weak links;4) the bank’s procedures of internal control, reviewing and auditingwithin its operational risk management processes;5) the quality and comprehensiveness of the bank’s catastropherecovery and business continuation plans;6) adequacy level of capital provisions for operational risks; and7) other aspects of operational risk management.Article 26 As to the operational risk management problems discovered by the CBRC during supervision, the commercial bank should submit correction plan and take correction actions within thespecified time limit.When a material operational risk event occurs, if the commercial bank fails to adopt effective correction measures within the specified time limit, the CBRC should take appropriate regulatory actions in line withlaws and regulations.Chapter IV Supplementary ProvisionsArticle 27 This Guidelines may apply to other banking institutions including policy banks, financial asset management companies, urban credit cooperatives, rural credit cooperatives, rural cooperative banks, trust and investment companies, finance firms, financial leasing companies, automobile financial companies, money brokers, and postsavings institutions.Article 28 Banking institutions without the board of directors should have their operating decision-making bodies perform theresponsibilities of the board with regard to operational riskmanagement specified herein.Article 29 Branches set up by foreign banks within the territory of People’s Republic of China should follow the operational risk management policies and processes developed by their head offices, report to the CBRC or its local offices about material operational risk events, and accept the supervision of the CBRC. Where their head offices do not lay out operational risk management policies andprocesses, such branches should comply with the Guidelines.Article 30 Relevant terms mentioned herein are defined in theAppendix.Article 31 The Guidelines shall become effective as of the date ofpromulgation.Appendix: Definitions of Relevant Terms1.Operational risk eventsOperational risk events refer to the operational events resulting from inadequate or failed internal processes, people and IT system, or from external factors, which bring about financial losses or affect the bank’s reputation, clients and staff. Specific events include: internal fraud, external fraud, employment practices and workplace safety, clients, products & business practices, damages to physical assets, business disruption and system failures, execution, delivery & process management (see Annex 7 – Detailed Loss Event Type Classification of The International Convergence of Capital Measurement and Capital Standards: A Revised Framework or the New Basel Capital Accord).2.self-assessment on risk, key risk indicatorsTools used by commercial banks to identify and assess operationalrisks.1) self-assessment on riskSelf-assessment on risk is a tool for operational risk management by commercial banks to identify and assess the control measures and appropriateness and effectiveness thereof with regard to potential operational risk and their own business practices.2) Key Risk IndicatorKey risk indicators refer to the statistical indicators that represent the changes in a certain area of risk and can be monitored on a regular basis. These indicators can be used to monitor various risks and control measures that may result in loss events and to function as early-warning indicators for risk changes (so that senior management can take timely actions accordingly). Examples of specific indicators: loss ratio per RMB100 million asset, number of banking crimes per 10,000 people, ratio of the cases with each involving a cash value of RMB1 million, number of transactions unconfirmed beyond a certaintime limit, percentage of failed transactions, staff turnover, number of client complaints, frequency and severity of errors and omissions, etc.3.Legal RiskLegal risk includes, but is not limited to, the following: 1) the contract signed by a commercial bank violating laws or administrative regulations and therefore being probably cancelled or confirmed invalid according to law; 2) the bank being sued or in arbitration because of its breach of contract, infringement or other reasons and held liable for compensation according to law; 3) the bank’s business practices violating laws or administrative regulations and therefore being held liable administratively or criminally.。
商业银行信贷风险管理外文翻译
文献信息:文献标题:Credit Risk Management Strategies and Their Impact on Performance of Commercial Banks in Kenya(信贷风险管理策略及其对肯尼亚商业银行绩效的影响)国外作者:Samuel Warui Mutua,Muoni Gekara文献出处:《Imperial Journal of Interdisciplinary Research》,2017, 3(4):1896-1904字数统计:英文2891单词,15678字符;中文4915汉字外文文献:Credit Risk Management Strategies and Their Impact on Performance of Commercial Banks in Kenya Abstract Credit risk management strategies are amongst the most critical factors to consider for any financial institution involved in any lending activity. Financial institutions have often find themselves making decisions between lending to potential borrowers thus effectively growing their balance sheets and effectively increasing their returns and being cautious in lending to caution themselves against any potential losses. Specifically, the research sought to examine credit risk management strategies and their impact on performance of commercial banks in Kenya. The research was guided by the liquidity theory of credit, portfolio theory, credit risk theory and the tax theory of credit.The research was based on a descriptive design which involves describing the current state of affairs by use of data collected through questionnaires and interviews. The research was focused on selected Tier III commercial banks in Kenya namely Consolidated Bank, African Banking Corporation and Credit Bank with reference to the loans department. The sampled population consists of 62 staff members from loans department of Consolidated Bank, African Banking Corporation and CreditBank. Primary data was collectedthrough the use of closed ended questionnaires, pick and drop procedure was used to collect data through use of the registered offices of the targeted loans departments of the target banks. Data analysis was done both quantitatively using tables and charts; this was then summarized, coded, tabulated and analyzed using both descriptive statistics and measures of variability with aid of SPSS package. Tables and graphs were used to present the data collected for ease of understanding and analysis. From the findings, the study concludes that credit risk management strategies including credit risk rating risks, credit approval risks, portfolio management risks and security perfection risks positively affect performance of commercial banks in Kenya.Key words: Credit risk management practices, commercial banks1.IntroductionCredit risk refers to the potential for loss as a resultof failure of counter party to meet their obligations of paying the financial institution according to the agreed terms. Credit exposures may arise from both banking and trading books. Management of credit risks requires a framework of well set out policies and procedures covering measurement and management of the credit risk (Barth et al, 2004).While financial institutions have faced difficulties over the years for a multitude of reasons, the major cause of serious banking problems continues to be directly related to lax credit standards for borrowers and counterparties, poor portfolio risk management, or a lack of attention to changes in economic or other circumstances that can lead to a deterioration in the credit standing of a bank’s counterparties. This experience is common in both the developed and developing countries.For most banks, loans are the largest and most obvious source of credit risk; however, other sources of credit risk exist throughout the activities of a bank,including in the banking book and in the trading book, and both on and off the balance sheet. Banks are increasingly facing credit risk (or counterparty risk) in various financial instruments other thanloans, including acceptances, interbank transactions, trade financing, foreign exchange transactions, financial futures, swaps,bonds, equities, options, and in the extension of commitments and guarantees, and the settlement of transactions.Each bank should develop a credit risk strategy or plan that establishes the objectives guiding thebank’s credit-granting activities and adopt the necessary policies and procedures for conducting such activities. The credit risk strategy, as well as significant credit risk policies, should be approved and periodically (at least annually) reviewed by the board of directors. The board needs to recognize thatthe strategy and policies must cover the many activities of the bank in which credit exposure is a significant risk (Haron et al, 2007).Credit Management is a financial management aspect that includes credit underwriting that encompasses analysis, approval, security perfection, portfolio management and debt recovery. Nzotta (2004) indicated that credit management directly influences the success or failures of financial institution involved in lending activities. He indicated that on the hindsight of lending being directly proportionalto the quantum of deposits received from the public, any unwise credit underwriting would translateto loss of depositors’ funds and losses to the financial institutions thereof.According to a report by Earnest and Young of 2013 on the banking environment in East Africa, it is reported that banks in Kenya, Tanzania, Uganda and Rwanda recorded growth rates in asset book of 16%, 14%, 13% and 12% respectively. This was on the advent of introduction of credit bureaus that was expected to improve on credit underwriting by improving decision making by 89% and effectively help reduce Non Performing portfolios across the board by 94%. Between the year 2009 and 2013, banks in Tanzania grew their CAGR by 17.5% with loans and advances outpacing overall asset growth which grew by 22.5% over the same period. In Uganda, the CAGR of banks grew by 13% whilst the growth in Rwanda was 12% in an economy that grew by 4.6%. In the period under review high loan provisioning occasioned by aggressive pursuit by various players to grow their balance sheets withouta simultaneous enhanced credit underwriting amongst other factors was highlighted as a reason high provisions were witnessed.Josiah Aduda and James Gitonga (2011) carried out a research on the relationship between credit risk management and profitability among the commercial banks in Kenya. They found out that a strong relationship does exist between credit management and profitability and that most banks held to this belief. Gatuhu (2011) conducted a research on the effect of financial performance of credit management on the financial performance of microfinance institutions in Kenya. Gatuhu found that there existed a strong relationship between credit appraisal of microfinance institutions, credit risk control and collection policy and the overall performance of microfinance institutions in Kenya. The period commencing second half of the year 2015 to the first half of 2016 witnessed particularly difficult times for the banking industry in Kenya with 3 out the then existing 43 commercial banks going under or being placed under statutory management. These were influenced by in one way directly or indirectly to issues revolving around weak credit management strategies.2.Statement of the ProblemThe main objective of any institution involved in money lending is to ensure that a healthy return is realized adequate to cover for all the risks assumedin addition to covering the foregone time value for money. In trying to attain this objective, prudence must be exercised to en sure that unnecessaryrisk isn’t taken that would most probably lead to unprecedented losses. It is for this reason that various institutions involved in money lending are guided by various frameworks to ensure care is exercised in making such decisions.There is an extensive literature on the managementof credit risk in commercial banks. Kealhofer (2003) did a research study on risk-adjusted performance measures in commercial banks. The measures, however, focus on risk-return trade-off, i.e. measuring the risk inherent in each activity and charge it accordingly for the capital required to support it. Greuning and Bratanovic (2003), studied sound credit granting process; maintaining an appropriate credit administration that involves monitoring process as well as adequate controls over credit risk.Clear established process for approving new credits and extending the existingcredits has been observed to be very important while managing credit risk (Heffernan, 2003). Mwirigi, (2006) didan assessment of the credit risk management techniques adopted by various MFIs in Kenya and ascertained that a considerable number of them had credit policies to enable them make informed credit decisions that stroke a balance between businessandrisk perspectives. Ndwiga, (2010) and Chege, (2010) both did a research to ascertain the relationship between credit risk management and the financial performance of MFIs in Kenya.There is no known study that has been done on strategic credit policies for risk management, thus knowledge gap. This study aims at establishing the credit risk management used by commercial banks and how they affect performance of the commercial banks. This research study is motivated to bridge the gap by investigating credit risk management strategies employed by commercial banks, especially Tier III banks in Kenya and how this impacts on their financial performance. In the commercial banks, management of credit risk has caused bank losses in developing countries, including Kenya. Effective credit risk management system minimizes the credit risk, hence the level of loan losses.3.Theoretical Review3.1.Liquidity Theory of CreditThis theory, first proposed by (Emery, 2009), proposes that credit rationed firms use more trade credit than those with normal access to financial institutions. The central point of this notion is that when a firm is financially inhibited the offer of trade credit can make up for the decline of credit offer from lending institutions.Inaccordwith thisview,those firms presenting good liquidity or better access to capital markets can finance those that are credit rationed. Several methodologies have tried to obtain empirical confirmation in order to support this assumption. Nielsen (2012), using small firms as proxy for credit rationed firms, firms find that when there is liquidity tightening in the economy, to ensure their sustainability, they are obligated to advance credit terms to their customers. As financially liberal firms are less likely to seek trade credit terms and more likely toextend the same, a negative relation between a buyers’ access to other sources of financing and trade credit is expected. (Petersen & Rajan, 2007) obtained evidence supporting this negative relation.3.2.Portfolio TheoryPortfolio theory of investment tries to optimize the expected portfolio return for a given proportion of portfolio risk or equivalently decrease the risk for a given level of anticipated return, by carefully choosing the mixed proportions of several assets. Portfolio theory is extensively used in practice in the financial sector and several of its inventors won a Nobel Prize for the same. In modern years the basic portfolio theory has been widely criticized by fields such as behavioral economics (Markowitz, 1952). Portfolio theory was devel oped in 1950’s all through to the early 1970’s and was considered a vital progression in the mathematical modeling of finance. Many theoretical and practical criticisms have since been developed against the same. This include the fact that financial returns do not follow a Gaussian distribution or indeed any symmetric distribution and those correlations between asset classes (Sproul, 1998)3.3.Tax Theory of CreditThe rationale of whether or not to accept a trade credit is based on the ability to access other sources of finances. A buyer is obliged to compare different financing options to find out which will be the most economically viable for them in making cost savings. In any business deal, payment may be on the spot or deferred to a date in the future, in which case a deferred cost element is attached to it in the form of interest. Thus, to find the best sources of funding, the buyer ought to investigate the real cost of borrowing. (Brick and Fung, 1984) suggest that, the tax effect should be considered in order to compare the trade credit cost with the cost of other financing options. The main reason for this is that if sellers and buyers are in different tax brackets, they have different costs of borrowing as their interests are tax allowable. The autho rs’ hypothesis is that; businesses in a high tax bracket tend to advance more trade credit thanthosein low brackets. Subsequently, only buyers in a low tax bracket than the seller will accept credit terms, since those in a higher tax brackets couldborrow more cheaply and directly from a financial organization. Another assumption is that businesses associated with a given sector and placed in a tax bracket below the specific sector average; cannot benefit from offering trade credit. Thus, (Brick and Fung 1984) propose that firms can’t use and offer trade credit.3.4.Credit Risk TheoryUntil barely the 1970s’, Credit risk had not been widely studied, although people have been facing credit risk ever since the very early times. Before 1974, early literature on credit risk used traditional actuarial methods of assessing the same, whosemajor challenge lies in their extensive dependence on historical data. Up to now there are three quantitative approaches of analyzing credit risk: structural approach, reduced form appraisal and incomplete information approach (Crosbie et al, 2003). Melton 1974, presented the credit risk theory else called the structural theory; which said the default event originates from a firm’s asset development displayed by a diffusion process with constant parameters.Such models are ordinarily defined as ‘Structural model’ and based on variables connected to a particular issuer. An evolution of this grouping is characterized by asset of models where the loss provisional on default is exogenously precise. In these models, the nonpayment can happenthroughout all the life of a corporate bond and not only at maturity (Longstaff and Schwartz, 1995).4.MethodologyThe study used descriptive research designAccording to Oso and Onen (2009) prior to carrying out the study there is need to determine the respondents, the data collection procedures, tools and instruments which would aid in data collection. According to Kothari, 2007. It involves describing the current state of affairs by use of data collected through questionnaires and interviews. Descriptive research design is qualitative whose main purpose is description of the state of affairs as it exists.Descriptive research seeks to establish factors associated with certain occurrences, outcomes, conditions or types of behavior. A complete set of people, events or objects from which the study seeks to generalize the results is known aspopulation (Mugenda, 2009). The study will concentrate on the 20 Tier III Commercial Banks Licensed by Central Bank of Kenya.Stratified sampling technique will be used in the collectionofsampleswherethe20TierIIIcommercial banks will be stratified into three categories which are; Government owned, Local Investors owned and Foreign Investor owned, further into male and female, also a mix of Experienced Managers, Senior Officers and Junior Credit officers, out of which 62 Employees will be selected to participate in the study. Purposive sampling will also be used so as to include Heads of Credit Units and also ensure all key credit operational areas are covered in the sample.In this study, a population consists of 62 staff from loans department of Consolidated Bank, African Banking Corporation and Credit Bank.The main tool for data collection in this study was a questionnaire. A closed ended questionnaire was preferred. The questions were designed based on Likert scale which allowed the respondentsto express their view on the study variables. According to Kothari (2007) open - ended questions allow respondents to give answers in their own way, whilst Closed - ended questions or forced choice questions provide an assortment of alternative answers from which the respondent is constrained to choose.The data collected was analyzed and interpretations drawn based on the analysis. Descriptive statistics was used in the analysis of quantitative data. The statistical tool for the analysis was the statistical package for the social sciences (SPSS) Version 20, which was used to analyze the data whereby the questionnaires would be coded and frequency distributions and percentages run.5.ConclusionsThey have a positive significant relationship on performance of commercial banksin Kenya. Sound credit rating mechanism is perceived as a great contributor towards the performance of credit facilities in commercial banks. This by and large affects the performance of the banks as a whole since the banks’ profitability are hinged on its credit services. There needs to be frequent credit trainings to improve onstaff competencies to ensure they are always kept abreast with developments in the industry to ensure appropriate credit underwriting is always done, this will inturn ensure, proper segmentation and accounts review is also done with an aim to ensure the credit element in a bank is well covered.There is need for inclusion of collateral appraisal. Since the credit approval risks are in turn influenced by therisk appetite of various commercial banks, a matrix acceptable to all banks based on factors such as capital strength and customer bases should be developed to ensure that an institution doesn’t necessarily take up risks that is too high that might impairably damage their overall financial strength and health should any unprecedented shocks materialize due to the risks taken by a bank.There is however need to review the provision requirementsas detailed by the Prudential Guidelines (PGs) to realign the same with the evolving banking environment which has seen a significant shift since the PGs were last reviewed. An all-inclusive forumto realign the provision requirement should be held between all the relevant stakeholders including the regulator (CBK) and the Commercial banks to arrive at ideal reviewed rates in line with the evolved banking environment.There is however need for Tier III banks to be more risk averse to unsecured lending and opt for asset backed lending. This is more so influencedby the fact that their balance sheets are relatively smaller which makes them unable to withstand shocks that may emanate from provisioning that would be occasionedby higherrequirements toprovision forthe unsecured borrowings or weakly secured exposures.中文译文:信贷风险管理策略及其对肯尼亚商业银行绩效的影响摘要信用风险管理策略是所有参与贷款活动的金融机构最重要的考虑因素之一。
商业银行风险管理中英文对照外文翻译文献
商业银行风险管理中英文对照外文翻译文献(文档含英文原文和中文翻译)“RISK MANAGEMENT IN COMMERCIAL BANKS”(A CASE STUDY OF PUBLIC AND PRIVATE SECTOR BANKS) - ABSTRACT ONLY1. PREAMBLE:1.1 Risk Management:The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Credit risk is the oldest and biggest risk that bank, by virtue of its very nature of business, inherits. This has however, acquired a greater significance in the recent past for various reasons. Foremost among them is the wind of economic liberalization that is blowing across the globe. India is no exception to this swing towards market driven economy. Competition from within and outside the country has intensified. This has resulted in multiplicity of risks both in number and volume resulting in volatile markets. A precursor to successful management of credit risk is a clear understanding about risks involved in lending, quantifications of risks within each item of the portfolio and reaching a conclusion as to the likely composite credit risk profile of a bank.The corner stone of credit risk management is the establishment of a framework that defines corporate priorities, loan approval process, credit risk rating system, risk-adjusted pricing system, loan-review mechanism and comprehensive reporting system.1.2 Significance of the study:The fundamental business of lending has brought trouble to individual banks and entire banking system. It is, therefore, imperative that the banks are adequate systems for credit assessment of individual projects and evaluating risk associated therewith as well as the industry as a whole. Generally, Banks in India evaluate a proposal through the traditional tools of project financing, computing maximum permissible limits, assessing management capabilities and prescribing a ceiling for an industry exposure. As banks move in to a new high powered world of financial operations and trading, with new risks, the need is felt for more sophisticated and versatile instruments for risk assessment, monitoring and controlling risk exposures. It is, therefore, time that banks managements equip themselves fully to grapple with the demands of creating tools and systems capable of assessing, monitoring and controlling risk exposures in a more scientific manner.Credit Risk, that is, default by the borrower to repay lent money, remains the most important risk to manage till date. The predominance of credit risk is even reflected in the composition of economic capital, which banks are required to keep a side for protection against various risks. According to one estimate, Credit Risk takes about 70% and 30%remaining is shared between the other two primary risks, namely Market risk (change in the market price and operational risk i.e., failure of internal controls, etc.). Quality borrowers (Tier-I borrowers) were able to access the capital market directly without going through the debt route. Hence, the credit route is now more open to lesser mortals (Tier-II borrowers).With margin levels going down, banks are unable to absorb the level of loan losses. There has been very little effort to develop a method where risks could be identified and measured. Most of the banks have developed internal rating systems for their borrowers, but there hasbeen very little study to compare such ratings with the final asset classification and also to fine-tune the rating system. Also risks peculiar to each industry are not identified and evaluated openly. Data collection is regular driven. Data on industry-wise, region-wise lending, industry-wise rehabilitated loan, can provide an insight into the future course to be adopted.Better and effective strategic credit risk management process is a better way to Manage portfolio credit risk. The process provides a framework to ensure consistency between strategy and implementation that reduces potential volatility in earnings and maximize shareholders wealth. Beyond and over riding the specifics of risk modeling issues, the challenge is moving towards improved credit risk management lies in addressing banks’readiness and openness to accept change to a more transparent system, to rapidly metamorphosing markets, to more effective and efficient ways of operating and to meet market requirements and increased answerability to stake holders.There is a need for Strategic approach to Credit Risk Management (CRM) in Indian Commercial Banks, particularly in view of;(1) Higher NPAs level in comparison with global benchmark(2) RBI’ s stipulation about dividend distribution by the banks(3) Revised NPAs level and CAR norms(4) New Basel Capital Accord (Basel –II) revolutionAccording to the study conducted by ICRA Limited, the gross NPAs as a proportion of total advances for Indian Banks was 9.40 percent for financial year 2003 and 10.60 percent for financial year 20021. The value of the gross NPAs as ratio for financial year 2003 for the global benchmark banks was as low as 2.26 percent. Net NPAs as a proportion of net advances of Indian banks was 4.33 percent for financial year 2003 and 5.39 percent for financial year 2002. As against this, the value of net NPAs ratio for financial year 2003 for the global benchmark banks was 0.37 percent. Further, it was found that, the total advances of the banking sector to the commercial and agricultural sectors stood at Rs.8,00,000 crore. Of this, Rs.75,000 crore, or 9.40 percent of the total advances is bad and doubtful debt. The size of the NPAs portfolio in the Indian banking industry is close to Rs.1,00,000 crore which is around 6 percent of India’ s GDP2.The RBI has recently announced that the banks should not pay dividends at more than 33.33 percent of their net profit. It has further provided that the banks having NPA levels less than 3 percent and having Capital Adequacy Reserve Ratio (CARR) of more than 11 percent for the last two years will only be eligible to declare dividends without the permission from RBI3. This step is for strengthening the balance sheet of all the banks in the country. The banks should provide sufficient provisions from their profits so as to bring down the net NPAs level to 3 percent of their advances.NPAs are the primary indicators of credit risk. Capital Adequacy Ratio (CAR) is another measure of credit risk. CAR is supposed to act as a buffer against credit loss, which isset at 9 percent under the RBI stipulation4. With a view to moving towards International best practices and to ensure greater transparency, it has been decided to adopt the ’ 90 days’ ‘ over due’ norm for identification of NPAs from the year ending March 31, 2004.The New Basel Capital Accord is scheduled to be implemented by the end of 2006. All the banking supervisors may have to join the Accord. Even the domestic banks in addition to internationally active banks may have to conform to the Accord principles in the coming decades. The RBI as the regulator of the Indian banking industry has shown keen interest in strengthening the system, and the individual banks have responded in good measure in orienting themselves towards global best practices.1.3 Credit Risk Management(CRM) dynamics:The world over, credit risk has proved to be the most critical of all risks faced by a banking institution. A study of bank failures in New England found that, of the 62 banks in existence before 1984, which failed from 1989 to 1992, in 58 cases it was observed that loans and advances were not being repaid in time 5 . This signifies the role of credit risk management and therefore it forms the basis of present research analysis.Researchers and risk management practitioners have constantly tried to improve on current techniques and in recent years, enormous strides have been made in the art and science of credit risk measurement and management6. Much of the progress in this field has resulted form the limitations of traditional approaches to credit risk management and with the current Bank for International Settlement’ (BIS) regulatory model. Even in banks which regularly fine-tune credit policies and streamline credit processes, it is a real challenge for credit risk managers to correctly identify pockets of risk concentration, quantify extent of risk carried, identify opportunities for diversification and balance the risk-return trade-off in their credit portfolio.The two distinct dimensions of credit risk management can readily be identified as preventive measures and curative measures. Preventive measures include risk assessment, risk measurement and risk pricing, early warning system to pick early signals of future defaults and better credit portfolio diversification. The curative measures, on the other hand, aim at minimizing post-sanction loan losses through such steps as securitization, derivative trading, risk sharing, legal enforcement etc. It is widely believed that an ounce of prevention is worth a pound of cure. Therefore, the focus of the study is on preventive measures in tune with the norms prescribed by New Basel Capital Accord.The study also intends to throw some light on the two most significant developments impacting the fundamentals of credit risk management practices of banking industry – New Basel Capital Accord and Risk Based Supervision. Apart from highlighting the salient features of credit risk management prescriptions under New Basel Accord, attempts are made to codify the response of Indian banking professionals to various proposals under the accord. Similarly, RBI proposed Risk Based Supervision (RBS) is examined to capture its direction and implementation problems。
商业银行信用卡风险管理外文文献翻译最新译文
商业银行信用卡风险管理外文文献翻译最新译文This article discusses the importance of credit risk management for commercial banks。
Credit risk is a major concern for banks as it can lead to XXX methods used by banks to manage credit risk。
including credit scoring。
credit limits。
and loanXXX to credit risk management。
The article XXX of credit risk to ensure the long-term XXXCredit risk management is a XXX to manage credit risk XXX。
it is essential for banks to adopt us methods to manage credit risk。
These methods include credit scoring。
credit limits。
and loanXXX are used to limit the amount of credit XXXXXX credit risk management。
The credit risk management department should work XXX departments。
such as lending and complianceXXX。
XXX that they are aware of the latest developments in credit risk management。
XXX of credit risk are critical for the long-term XXX that they are effective and up-to-date。
银行信用风险外文文献翻译
Interim Measures on Information Disclosure of Commercial BanksOrder No.6 of the People's Bank of ChinaMay 15, 2002Chapter I General ProvisionsArticle 1 These rules are formulated on the basis of "Law on the People's bank of China of the People's Republic of China" and "Commercial Banking Law of the People's Bank of China", which aim to strengthen market discipline of commercial banks, standardize information disclosure of commercial banks, effectively safeguard legitimate interests of depositors and other stakeholders and promote safe, sound and efficient operation of commercial banks.Article 2 These rules are to be applied to commercial banks that are established legally within the territory of the People's Republic of China, including domestic commercial banks, wholly foreign funded banks, joint venture banks and branches of foreign banks. Article 3 Commercial banks should disclose information according to these rules, which are the minimum requirements for commercial banks' information disclosure. While abiding by these rules, commercial banks can disclose more information than what has been required by these rules at their own discretion.In addition to these rules, listed commercial banks should also conform to relevant information disclosure rules published by regulatory body of the securities industry. Article 4 Information disclosure of commercial banks should be proceeded consistent with laws and regulations, the uniform domestic accounting rules and relevant rules of the PBC. Article 5 Commercial banks should disclose information in a standardized fashion, while ensuring authenticity, accuracy, integrity and comparability.Article 6 Annual financial statements disclosed by commercial banks should be subject to auditing by accounting firms that are certified to be engaged in finance-related auditing. Article 7 The People's Bank of China is to supervise commercial banks' information disclosure according to relevant laws and regulations.Chapter II Information to be DisclosedArticle 8 Commercial banks should disclose financial statements, and information on risk management, corporate governance and big events of the year according to these rules. Article 9 Commercial banks' financial statements should include accounting report, annex and notes to this report and description of financial position.Article 10 Accounting report disclosed by commercial banks should include balance sheet, statement of income (profit and loss account), statement of owner's equity and other additional charts.Article 11 Commercial banks should indicate inconsistence between the basis of preparation and the basic preconditions of accounting in their notes to the accounting report.Article 12 Commercial banks should explain in their notes to the accounting report the important policy of accounting and accounting estimates, including: Accounting standards, accounting year, reporting currency, accounting basis and valuation principles; Type and scope of loans; Accounting rules for investment; Scope and method of provisions against asset losses; Principle and method of income recognition; Valuation method for financial derivatives; Conversion method for foreign currency business and accounting report; Preparation method for consolidated accounting report; Valuation and depreciation method for fixed assets; Valuation method and amortization policy for intangible assets; Amortization policy for long-term deferred expenses; Accounting practice for income tax. Article 13 Commercial banks should indicate in their notes to the accounting report crucial changes of accounting policy and estimates, contingent items and post-balance sheet items, transfer and sale of important assets.Article 14 Commercial banks should indicate in their annex and notes to the accounting report the total volume of related party transactions and major related party transactions. Major related party transactions refer to those with trading volume exceeding 30 million yuan or 1% of total net assets of the commercial bank.Article 15 Commercial banks should indicate in their notes to the accounting report detailed breakdown of key categories in the accounting report, including:(1) Due from banks by the breakdown of domestic and overseas markets.(2) Interbank lending by the breakdown of domestic and overseas markets.(3) Outstanding balance of loans at the beginning and the end of the accounting year by the breakdown of credibility loans, committed loans, collateralized loans and pledged loans.(4) Non-performing loans at the beginning and end of the accounting year resulted from the risk-based loan classification.(5) Provisions for loan losses at the beginning and the end of the accounting year, new provisions, returned provisions and write-offs in the accounting year. General provisions, specific provisions and special provisions should be disclosed separately.(6) Outstanding balance and changes of interest receivables.(7) Investment at the beginning and the end of the accounting year by instruments.(8) Interbank borrowing in domestic and overseas markets.(9) Calculation, outstanding balance and changes of interest payables.(10) Year-end outstanding balance and other details of off-balance sheet categories, including bank acceptance bills, external guarantees, letters of guarantee for financing purposes, letters of guarantee for non-financing purposes, loan commitments, letters ofcredit (spot), letters of credit (forward), financial futures, financial options, etc.(11) Other key categories.Article 16 Commercial banks should disclose in their notes to the accounting report status of capital adequacy, including total value of risk assets, amount and structure of net capital, core capital adequacy ratio and capital adequacy ratio.Article 17 Commercial banks should disclose auditing report provided by the appointed accounting firms.Article 18 Description of financial position should cover the general performance of the bank, generation and distribution of profit and other events that have substantial impact on financial position and performance of the bank.Article 19 Commercial banks should disclose following risks and risk management details: (1) Credit risk. Commercial banks should disclose status of credit risk management, credit exposure, credit quality and earnings, including business operations that generate credit risks, policy of credit risk management and control, organizational structure and division of labor in credit risk management, procedure and methods of classification of asset risks, distribution and concentration of credit risks, maturity analysis of over-due loans, restructuring of loans and return of assets.(2) Liquidity risk. Commercial banks should disclose relevant parameters that can represent their status of liquidity, analyze factors affecting liquidity and indicate their strategy of liquidity management.(3) Market risk. Commercial banks should disclose risks brought by changes of interest rates and exchange rate on the market, analyzing impacts of such changes on profitability and financial positions of the bank and indicating their strategy of market risk management.(4) Operation risk. Commercial banks should disclose risks brought by flaws and mistakes of internal procedures, staff and system or by external shocks and indicate the integrity, rationality and effectiveness of their internal control mechanism.(5) Other risks. Other risks that may bring severe negative impact to the bank.Article 20 Commercial banks should disclose following information on corporate governance:(1) Shareholders' meeting during the year.(2) Members of the board of directors and its work performance.(3) Members of the board of supervisors and its work performance.(4) Members of the senior management and their profiles.(5) Layout of branches and function departments.Article 21 Chronicle of events disclosed by commercial banks in the year should at least include the following contents:(1) Names of the ten biggest shareholders and changes during the year.(2) Increase or decrease of registered capital, splitting up and merger.(3) Other important information that is necessary for the general public to know.Article 22 Information of foreign bank branches is to be collected and disclosed by the primary reporting branch.Foreign bank branches don't need to disclose information that is only mandated and required for disclosure by institutions with legal person status.Foreign bank branches should translate into Chinese and disclose the summary of information disclosed by their head offices.Article 23 Commercial banks need not disclose information of unimportant categories. However, if the omission or misreporting of certain categories or information may chan ge or affect the assessment or judge of the information users, commercial banks should regarded the categories as key information categories and disclose them.Chapter III Management of Information DisclosureArticle 24 Commercial banks should prepare in Chinese their annual reports with all the information to be disclosed and publish them within 4 month after the end of each accounting year. If they are not able to disclose such information on time due to special factors, they should apply to the People's Bank of China for delay of disclosure at least 15 days in advance.Article 25 Commercial banks should submit their annual reports to the People's Bank of China prior to disclosure.Article 26 Commercial banks should make sure that their shareholders and stakeholders could obtain the annual reports on a timely basis.Commercial banks should put their annual reports in their major operation venue, so as to ensure such reports are readily available for the general public to read and check. The PBC encourage commercial banks to disclose main contents of their annual reports to the public through media.Article 27 Boards of directors in commercial banks are responsible for the information disclosure. If there is no board of directors in the bank, the president (head) of the bank should assume such a responsibility.Boards of directors and presidents (heads) of commercial banks should ensure the authenticity, accuracy and integrity of the disclosed information and take legal responsibility for their commitments.Article 28 Commercial banks and their involved staff that provide financial statements with false information or concealing important facts should be punished according to the " Rules on Punishment of Financial Irregularities".Accounting firms and involved staff that provide false auditing report should be punished according to the "Interim Measures on Finance-related Auditing Business by AccountingFirms".Chapter IV Supplementary ProvisionsArticle 29 Commercial banks with total assets below RMB 1 billion or with total deposits below RMB 500 million are exempted from the compulsory information disclosure. However, the People's Bank of China encourages such commercial banks to disclose information according to these rules.Article 30 The People's Bank of China is responsible for the interpretation of these rules. Article 31 These rules shall enter into force as of the date of promulgation and are to be applied to all commercial banks except city commercial banks.City commercial banks should adopt these rules gradually from January 1, 2003 to January 1, 2006.中国人民银行令[2002]第6号2002年5月15日第一章总则第一条为加强商业银行的市场约束,规范商业银行的信息披露行为,有效维护存款人和相关利益人的合法权益,促进商业银行安全、稳健、高效运行,依据《中华人民共和国中国人民银行法》、《中华人民共和国商业银行法》等法律法规,制定本办法。
商业银行信用风险外文翻译文献
商业银行信用风险外文翻译文献(文档含英文原文和中文翻译)估计技术和规模的希腊商业银行效率:信用风险、资产负债表的活动和国际业务的影响1.介绍希腊银行业经历了近几年重大的结构调整。
重要的结构性、政策和环境的变化经常强调的学者和从业人员有欧盟单一市场的建立,欧元的介绍,国际化的竞争、利率自由化、放松管制和最近的兼并和收购浪潮。
希腊的银行业也经历了相当大的改善,通信和计算技术,因为银行有扩张和现代化其分销网络,其中除了传统的分支机构和自动取款机,现在包括网上银行等替代分销渠道。
作为希腊银行(2004 年)的年度报告的重点,希腊银行亦在升级其信用风险测量与管理系统,通过引入信用评分和概率默认模型近年来采取的主要步骤。
此外,他们扩展他们的产品/服务组合,包括保险、经纪业务和资产管理等活动,同时也增加了他们的资产负债表操作和非利息收入。
最后,专注于巴尔干地区(如阿尔巴尼亚、保加利亚、前南斯拉夫马其顿共和国、罗马尼亚、塞尔维亚)的更广泛市场的全球化增加的趋势已添加到希腊银行在塞浦路斯和美国以前有限的国际活动。
在国外经营的子公司的业绩预计将有父的银行,从而对未来的决定为进一步国际化的尝试对性能的影响。
本研究的目的是要运用数据包络分析(DEA)和重新效率的希腊银行部门,同时考虑到几个以上讨论的问题进行调查。
我们因此区分我们的论文从以前的希腊银行产业重点并在几个方面,下面讨论添加的见解。
首先,我们第一次对效率的希腊银行的信用风险的影响通过检查其中包括贷款损失准备金作为附加输入Charnes et al.(1990 年)、德雷克(2001 年)、德雷克和大厅(2003 年),和德雷克等人(2006 年)。
作为美斯特(1996) 点出"除非质量和风险控制的一个人也许会很容易误判一家银行的水平的低效;例如精打细算的银行信用评价或生产过高风险的贷款可能会被贴上标签一样高效,当相比银行花资源,以确保它们的贷款有较高的质量"(p.1026)。
商业银行经营风险评价英文版
2
Establishing Key Risk Indicators
Setup automated monitoring systems to track risk indicators and trigger alerts
when thresholds are breached.
3
Regular Audit & Review
prevention.
典型案例解析
Bank Robbery
Cybersecurity Breach
Insider Trading
Analyze risks associated with
Explore the impact of cyber
Examine risks pertaining to
physical security, robbery
mitigation of risks.
landscape.
Explore the use of insurance, derivatives, and contracts to transfer risks
to external parties.
3
Enhancing Risk Culture
Promote risk awareness, training, and foster a strong risk management
2பைடு நூலகம்
Embracing Emerging
Risks
3
Stakeholder
Engagement
Reflect on past
Prepare for new risks
Collaborate with
商业银行信用卡风险管理外文文献翻译最新译文
文献出处:Nicely E. The research of commercial bank credit risk management [J]. Research in International Business and Finance, 2015, 8(2): 17-26.原文The research of commercial bank credit risk managementNicely EAbstractCommercial bank credit card business risk management broad sense refers to the commercial bank credit card business, because of various unfavorable factors caused by the issuers, cardholders, specially engaged the possibility of loss. Credit risk refers to the pure credit for credit CARDS are unsecured loans, and credit is not high, the customer more than individual, as well as small amount of single feature, lead to the possibility of loss of card issuers. Through to the commercial Banks to do a good job of credit card risk management put forward the Suggestions and comments, and pay attention to the risks of commercial Banks to establish perfect management system, system, business process research, and put forward the commercial Banks in establishing a system of credit card business management structure, regulations, at the same time, want to notice to each kind of risk identification, measurement, assessment and do a good job in risk loss provisions in personnel management, should pay attention to establish risk rewards and punishment mechanism, pay attention to the positive incentives to the employees.Keywords: Credit CARDS; Risk management; Incentive mechanism1 IntroductionCredit card refers to the bank issued to individuals and units, with the function such as shopping, consumption and access cash bank card. Its striking feature is that the Banks granted to customer a certain line of credit, customers can enjoy the privilege of the reimbursement after be being card first, its form is a positive with the issuing bank name, the period of validity, card number, card, the cardholder's name, article with a magnetic stripe, signature on the back of the information such as bank CARDS. We now call the credit card, generally refers to borrow write down card. Credit risk refers to the bank credit card holders for various reasons failed to fullyrepay bank debt and cause the possibility of default, defaults, bank will because the cardholder does not thereby causing loss to the bank funds paid promptly. Credit card main risk including fraud risk, credit risk, operational risk, accredit card risk management refers to in the process of credit card business, the possible including fraud risk, credit risk, operational risk, etc, all kinds of risk management and control is to reduce the possibility of loss The loss rate of operation and management activities.2 Literature reviewThe concept of risk management since the 30 s of 20th century, after nearly 40 years of development to form a system, gradually by people began to attach importance to and cognition, form a new management discipline. The concept of risk mainly comes from the insurance industry, insurance for risk defined as the uncertainty of loss. In 1964, the United States of the risk management and insurance, it has made the definition: risk book points out that through the risk identification, assessment, and control to achieve with minimum cost to make a management method of minimizing the risk loss. In 1976, eight Gerry, in his book, the risk management of international enterprise, points out that protection of enterprise's financial stability, reduce the loss caused by risk events is the main goal of the enterprise risk management. In 1975, risk management and insurance management society, scholars from all over the world including general principles, risk management was determined by the talk of risk identification and measurement, risk control and other criteria. The establishment of these guidelines, marks all over the world, risk management theory with the preliminary development, management framework has been set up. Also marks the risk management has entered a new stage. In July 2004, Basel 2 rules on commercial Banks, puts forward a new risk management requirements, he fully considered for the bank including market risk, liquidity risk, credit risk and operational risk, a variety of provide for risk identification, risk measurement standard, make risk management work more accurate quantitative measurement. In 2004, the COSO committee issued "enterprise risk management integrated framework", put forward by the enterprise internal control into risk control as the main direction of management thinking. Puts forward the concept of comprehensive risk management,including internal environment, goal setting, time identification, risk evaluation, risk countermeasure, control activities, information and communication and so on eight aspects. American engineer bill fair and Earl joint research and development of the FICO credit score model, since the most card issuers have also been used this model. This model gives the credit scoring system out of a possible 900 points, according to the situation of the borrower's credit history and compare the data with other borrowers, given the borrower credit situation trend in the future.3 Credit card risk3.1 Credit card cash outCredit card cash out to merchants with the bad cardholders or other third party in collusion, or merchants themselves by credit card as the carrier, through the fictitious transactions, asking price, cash return, show the credit card credit behavior, including but not limited to: merchants and cardholders conspired to use point-of-sale terminals (POS), with fictitious transactions, falsely making out the price, cash returns to the behavior of the cardholders to pay cash directly; Or merchants to help paid the cardholder account overdraft, after using the POS machine will advances in fictitious trading way back to their accounts, and collect fees to the cardholder a card such as behavior; Or online merchants cardholders conspired to fictional price, false transactions, such as buying from selling the way, show the credit card for trafficking in fraudulent credit card Internet consumption credit, etc.3.2 False card stolen brushFalse card stolen brush refers to criminals use false card on the POS terminal for credit card transactions to steal bank funds, belong to the important type of fraud. Criminals often by merchants, independent bank terminals, as well as a variety of convenient payment terminal channels, using dedicated track record the equipment needed for the bank card information side track information through various channels, such as the Internet or buy others have steal bank card track information, password access usually by peeping in the cardholder spending places the cardholder password or independent in ATM equipment installed video cameras record customer password, even through ATM keyboard paste, such as false record customer password keyboard,or using client code, easy to guess the cardholder password and other means to obtain the cardholder password.3.3 Online payment fraudOnline payment fraud refers to the fraud part swindled through Internet channels and the cardholder's bank. On-line payment fraud mainly by non-financial institutions or commercial Banks provide online payment channel for fraud. Current fraud activists by phishing site, bank card fraud or Trojan virus, characterized by use of phishing site or Trojan virus to steal the cardholder's bank card number, password and verification code information, phishing cardholders to online trading, to defraud money. Or commercial bank online banking channel for bank card fraud, fraud part using bank online banking vulnerabilities, and the weak link in the online banking fraud.3.4 Operating riskPrevention and control of credit card operation risk, first, to find a good risk points, find out in the hairpin and post-loan risk prone link in the entire process, find out the risk points, and then control the risk. Credit card's life cycle is divided into application stage, audit stage, hairpin used to send phase, activation and post-loan management, such as card renewal phase. First by the applicant voluntarily to the commercial bank to apply for or commercial bank marketing personnel to promote credit card products to the applicant, the applicant according to the guidance of sales people to fill out credit card application form after the above requirements to fill out information, to submit proof of identity is required by the application, work proves that the domicile certificate materials, such as bank marketing personnel will be the applicant's application form submitted to the bank's examination and approval department, by a bank according to the customer qualification examination and approval department for credit card mail after examination and approval to the customer. Customers call the bank customer service special line opened activate the card, the card can normal use, generally the validity of the credit card for 3 ~ 5 years according to the process of the life cycle of credit card sorting operation risk points exist in the whole cycle.4 Conclusions and recommendationsFalse card stolen brush loss brings to the commercial Banks, cardholders Carrie's money is missing, tend to give the feeling of cardholders' money in the bank is not safe, affect the reputation of the bank, bring bank reputation risk. In the process of pursuing for unauthorized, if not solve in time, often commercial Banks must bear a lot of damage. Due to false card stolen brush is not tight to bank losses, and seriously affected the reputation of the bank. So focus on guard against the risk of false card stolen brush is the key of the bank fraud risk control. Commercial bank credit card business is strengthening risk prevention. To do the following: to strengthen the education of the cardholder and prevent unauthorized knowledge propaganda, tip card holders do not use the card to the others, pay attention to protect the password in the daily charge without being stolen. Strengthen the bank back transaction monitoring, summarizes the characteristics of the pseudo card stolen brush, such as the combination of false card stolen brush is easy to occur before time, business category, unauthorized ongoing balance inquiry, around zero, fraud part of bank daily trading limit restrictions for unauthorized transaction monitoring rules set by the characteristics. When the transaction behavior, identity card and cardholders are found not to conform or high transaction should contact the cardholder to confirm authenticity, to confirm that the cardholder to authorize the transaction after I deal correct. Effectively raise Banks to prevent false card stolen brush ability of risk prevention and control. Magnetic stripe card renewal work done as soon as possible because the bank magnetic stripe card refers to magnetic materials for storage medium, such as bank account information recorded in the magnetic stripe CARDS, magnetic stripe card is easy to be copied to the bank money loss, therefore at present a lot of Banks have begun to bank card renewal work, with good safety performance of financial IC card instead of bank magnetic stripe card. In addition, improve the incentive mechanism construction of risk management, on the basis of regular and irregular in the risk assessment results, good for the risk assessment results, comprehensive risk management framework construction perfect mechanism, through the authorization for adjustment, performance ratings, priority support to start newbusiness delegation, adjustment factors of business innovation, management, can be appropriately in the human resources and cost allocation give policy tilt, can give points in performance appraisal review. For risk management body have made outstanding contributions or reduce loss of major risk events offer certain material and spiritual reward employees, and on the personal career advancement channels give sufficient consideration; For all kinds of risk management talents, external training, qualification certification, access to exchange offer certain aspects such as policy tilt, and on the personal career advancement channels will be given full consideration. For all kinds of risk management talents, external training, qualification certification, access to exchange offer certain aspects such as policy tilt, and on the personal career advancement channels will be given full consideration.译文商业银行信用卡风险管理研究Nicely E摘要商业银行信用卡业务风险管理广义上讲是指在商业银行信用卡业务经营中,因各种不利因素而导致的发卡机构、持卡人、特约商户等损失的可能性。
商业银行风险管理中英文对照外文翻译文献
商业银行风险管理中英文对照外文翻译文献(文档含英文原文和中文翻译)“RISK MANAGEMENT IN COMMERCIAL BANKS”(A CASE STUDY OF PUBLIC AND PRIVATE SECTOR BANKS) - ABSTRACT ONLY1. PREAMBLE:1.1 Risk Management:The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Credit risk is the oldest and biggest risk that bank, by virtue of its very nature of business, inherits. This has however, acquired a greater significance in the recent past for various reasons. Foremost among them is the wind of economic liberalization that is blowing across the globe. India is no exception to this swing towards market driven economy. Competition from within and outside the country has intensified. This has resulted in multiplicity of risks both in number and volume resulting in volatile markets. A precursor to successful management of credit risk is a clear understanding about risks involved in lending, quantifications of risks within each item of the portfolio and reaching a conclusion as to the likely composite credit risk profile of a bank.The corner stone of credit risk management is the establishment of a framework that defines corporate priorities, loan approval process, credit risk rating system, risk-adjusted pricing system, loan-review mechanism and comprehensive reporting system.1.2 Significance of the study:The fundamental business of lending has brought trouble to individual banks and entire banking system. It is, therefore, imperative that the banks are adequate systems for credit assessment of individual projects and evaluating risk associated therewith as well as the industry as a whole. Generally, Banks in India evaluate a proposal through the traditional tools of project financing, computing maximum permissible limits, assessing management capabilities and prescribing a ceiling for an industry exposure. As banks move in to a new high powered world of financial operations and trading, with new risks, the need is felt for more sophisticated and versatile instruments for risk assessment, monitoring and controlling risk exposures. It is, therefore, time that banks managements equip themselves fully to grapple with the demands of creating tools and systems capable of assessing, monitoring and controlling risk exposures in a more scientific manner.Credit Risk, that is, default by the borrower to repay lent money, remains the most important risk to manage till date. The predominance of credit risk is even reflected in the composition of economic capital, which banks are required to keep a side for protection against various risks. According to one estimate, Credit Risk takes about 70% and 30%remaining is shared between the other two primary risks, namely Market risk (change in the market price and operational risk i.e., failure of internal controls, etc.). Quality borrowers (Tier-I borrowers) were able to access the capital market directly without going through the debt route. Hence, the credit route is now more open to lesser mortals (Tier-II borrowers).With margin levels going down, banks are unable to absorb the level of loan losses. There has been very little effort to develop a method where risks could be identified and measured. Most of the banks have developed internal rating systems for their borrowers, but there hasbeen very little study to compare such ratings with the final asset classification and also to fine-tune the rating system. Also risks peculiar to each industry are not identified and evaluated openly. Data collection is regular driven. Data on industry-wise, region-wise lending, industry-wise rehabilitated loan, can provide an insight into the future course to be adopted.Better and effective strategic credit risk management process is a better way to Manage portfolio credit risk. The process provides a framework to ensure consistency between strategy and implementation that reduces potential volatility in earnings and maximize shareholders wealth. Beyond and over riding the specifics of risk modeling issues, the challenge is moving towards improved credit risk management lies in addressing banks’readiness and openness to accept change to a more transparent system, to rapidly metamorphosing markets, to more effective and efficient ways of operating and to meet market requirements and increased answerability to stake holders.There is a need for Strategic approach to Credit Risk Management (CRM) in Indian Commercial Banks, particularly in view of;(1) Higher NPAs level in comparison with global benchmark(2) RBI’ s stipulation about dividend distribution by the banks(3) Revised NPAs level and CAR norms(4) New Basel Capital Accord (Basel –II) revolutionAccording to the study conducted by ICRA Limited, the gross NPAs as a proportion of total advances for Indian Banks was 9.40 percent for financial year 2003 and 10.60 percent for financial year 20021. The value of the gross NPAs as ratio for financial year 2003 for the global benchmark banks was as low as 2.26 percent. Net NPAs as a proportion of net advances of Indian banks was 4.33 percent for financial year 2003 and 5.39 percent for financial year 2002. As against this, the value of net NPAs ratio for financial year 2003 for the global benchmark banks was 0.37 percent. Further, it was found that, the total advances of the banking sector to the commercial and agricultural sectors stood at Rs.8,00,000 crore. Of this, Rs.75,000 crore, or 9.40 percent of the total advances is bad and doubtful debt. The size of the NPAs portfolio in the Indian banking industry is close to Rs.1,00,000 crore which is around 6 percent of India’ s GDP2.The RBI has recently announced that the banks should not pay dividends at more than 33.33 percent of their net profit. It has further provided that the banks having NPA levels less than 3 percent and having Capital Adequacy Reserve Ratio (CARR) of more than 11 percent for the last two years will only be eligible to declare dividends without the permission from RBI3. This step is for strengthening the balance sheet of all the banks in the country. The banks should provide sufficient provisions from their profits so as to bring down the net NPAs level to 3 percent of their advances.NPAs are the primary indicators of credit risk. Capital Adequacy Ratio (CAR) is another measure of credit risk. CAR is supposed to act as a buffer against credit loss, which isset at 9 percent under the RBI stipulation4. With a view to moving towards International best practices and to ensure greater transparency, it has been decided to adopt the ’ 90 days’ ‘ over due’ norm for identification of NPAs from the year ending March 31, 2004.The New Basel Capital Accord is scheduled to be implemented by the end of 2006. All the banking supervisors may have to join the Accord. Even the domestic banks in addition to internationally active banks may have to conform to the Accord principles in the coming decades. The RBI as the regulator of the Indian banking industry has shown keen interest in strengthening the system, and the individual banks have responded in good measure in orienting themselves towards global best practices.1.3 Credit Risk Management(CRM) dynamics:The world over, credit risk has proved to be the most critical of all risks faced by a banking institution. A study of bank failures in New England found that, of the 62 banks in existence before 1984, which failed from 1989 to 1992, in 58 cases it was observed that loans and advances were not being repaid in time 5 . This signifies the role of credit risk management and therefore it forms the basis of present research analysis.Researchers and risk management practitioners have constantly tried to improve on current techniques and in recent years, enormous strides have been made in the art and science of credit risk measurement and management6. Much of the progress in this field has resulted form the limitations of traditional approaches to credit risk management and with the current Bank for International Settlement’ (BIS) regulatory model. Even in banks which regularly fine-tune credit policies and streamline credit processes, it is a real challenge for credit risk managers to correctly identify pockets of risk concentration, quantify extent of risk carried, identify opportunities for diversification and balance the risk-return trade-off in their credit portfolio.The two distinct dimensions of credit risk management can readily be identified as preventive measures and curative measures. Preventive measures include risk assessment, risk measurement and risk pricing, early warning system to pick early signals of future defaults and better credit portfolio diversification. The curative measures, on the other hand, aim at minimizing post-sanction loan losses through such steps as securitization, derivative trading, risk sharing, legal enforcement etc. It is widely believed that an ounce of prevention is worth a pound of cure. Therefore, the focus of the study is on preventive measures in tune with the norms prescribed by New Basel Capital Accord.The study also intends to throw some light on the two most significant developments impacting the fundamentals of credit risk management practices of banking industry – New Basel Capital Accord and Risk Based Supervision. Apart from highlighting the salient features of credit risk management prescriptions under New Basel Accord, attempts are made to codify the response of Indian banking professionals to various proposals under the accord. Similarly, RBI proposed Risk Based Supervision (RBS) is examined to capture its direction and implementation problems。
现代商业银行的风险管理模式
现代商业银行的风险管理模式
【中英文实用版】
Title: Modern Commercial Bank"s Risk Management Model
随着金融市场的日益复杂和竞争,现代商业银行越来越重视风险管理。
在现代商业银行的风险管理中,信用风险管理占据核心地位。
现代商业银行的风险管理不仅包括传统的信贷风险,还包括市场风险、操作风险、合规风险等多个方面。
为了应对这些风险,现代商业银行采取了一系列的风险管理工具和策略,如风险分散、风险转移、风险规避等。
同时,现代商业银行也在不断加强风险管理的信息化建设,提高风险管理的效率和准确性。
总的来说,现代商业银行的风险管理模式是一个多元化、系统化、动态化的过程。
现代商业银行的风险管理不仅需要内部控制和风险管理团队的共同努力,还需要与外部监管机构、市场参与者和其他利益相关者保持良好的沟通和合作。
在未来的发展中,现代商业银行需要继续加强风险管理的创新,以适应不断变化的金融环境和市场需求。
商业银行管理(全英文)
-银行评估信息的能力超群。
-银行的委托授权监控功能。
Services Banks Offer the Public
Traditional items: - Carrying out currency exchanges - Discounting commercial notes and making business loans - Offering savings deposits - Safekeeping of valuables and Certification of value - Supporting Government activities with credit - Offering checking accounts (demand deposits) - Offering trust services
- The safekeeping/certification of value role保管和鉴定
The Functional Roles of Banks
The Role of Banks in Theory
Banks are financial intermediaries金融中介 selling financial services金融服务.
-准许消费者贷款 -财务顾问 -现金管理 -提供设备租赁 -使风险资本贷款 -出售保险服务
- Selling retirement plans
- Offering security brokerage佣金 and
security underwriting services - Offering mutual funds and annuities - Offering investment banking and merchant 批发商 services
金融学专业商业银行信贷风险管理外文文献翻译中3000字
文献出处:Cornett M, Strahan P. The credit risk management of commercial banks [J]. Journal of Financial Economics, 2015, 101(2): 297-312.原文The credit risk management of commercial banksCornett M, Strahan PAbstractCredit risk is one of the most usual ones which any commercial banks may encounter during their operation. Credit risks of commercial banks not only cause losses which result in bankruptcy but also cause the most serious issues of financial and economic crisis of one nation. Referring to credit risk management of Vietnam commercial bank system,the capability of credit risks management of Vietnam commercial banks is still low; The rate of bad debt in the entire system is still much higher than international standards. Take this situation in consideration together with referring to a great number of documentations, I have studied credit risk managementof the three typical commercial bank in Vietnam and analyzed and evaluated the remaining issues in the process of credit risk control by these banks and offer some relevant solutions to the entire system of domestic banks. In credit risk management, I shall focus mainly on unscientific features in econometrics methods of credit risk management issued by commercial banks in Vietnam,which is inclusive of combination of unclear mathematic method and class analysis one to calculate credit risks. Due to the fact that credit risk management after disbursement by most of commercial banks is still weak, it is quite needed to study management after disbursement, particularize the method of identifying credit asset debt, build five-class classification, carry out actual management of credit asset and base on tendency of bad debt to offer solutions for every time period. In conclusion, what motioned herein comes from credit risk management in consideration of prevention, calculation, change and solution as well as risk management institutions.Key words: Risk, credit risk, commercial bank credit.1 Commercial bank credit risk management theoryAlthough Banks have a long history, but the theoretical analysis of credit risk is a relatively short history. By kea ton (Keeton, 1979), stag Ritz and Weiss (Mr. Weiss, 1981) development and formation of the "incomplete information credit rationing models on the market", it is pointed out that the credit market credit risk not only the two typical forms of...Adverse selection and moral hazard, and demonstrates the root of the credit risk, information asymmetry caused by the principal-agent relationship, lead to the emergence of credit rationing. Credit risk management refers to the commercial Banks through the scientific method of various subjective factors could lead to credit losses effectively forecast, analysis, prevention, control and processing. In order to reduce the credit risk, reduce the credit losses and improve the quality of credit, to enhance the capacity of the commercial bank risk control and loss compensation ability of a credit management activity. Depth understanding of credit risk management from the following four to grasp. One is the basis of credit risk management is according to the characteristics of credit requirements, not against the objective law of credit; The second is the credit risk management is scientific, modernization, standardization, quantitative and comprehensive; Three is the credit risk management method is mainly credit risk analysis, risk identification, risk measurement, risk control and risk management; Four is the credit risk management goal is to reduce risk, reduce loss, enhance the ability of commercial Banks operating risk.In order to guarantee bank loans will not be against its customers, to customers, companies, enterprises, such as different customer types before they are allowed to make loans to consider some problems. Also the question bank standard of 5 cabaña will select credit analysis of 5 c as a measure of the basic elements of corporate credit risk:1.1 QualityThe debtor to meet its debt obligations will, is the first indicator of evaluate the credit quality of the debtor. Regarding the quality of the wholesale banking, measure, or can be based on the reputation of the company management/owner eventually and company strategy.1.2 AbilityThe debtor's solvency, include the trend of the vision of the industry, the sustainable development of the company; the financial data mainly embodied in the current ratio and quick ratio. The stability of the corporate cash income directly determines its solvency and probability of default.1.3 CapitalRefers to the capital structure of the debtor or quotas, which indicates that the background of the customer may repay debt, such as debt ratio) or the net value of fixed assets and other financial indicators, etc.Shadow of the company's capital structure financing strategy: equity financing and debt financing.1.4 EnvironmentCompany locates the environment and the adaptability to the environment. Including solvent could affect the debtor's political, economic and market environment, such as the dong to rise and cancel the export tax rebate. As the "green credit, supported by more and more countries and companies, sustainable risk also be incorporated into the environmental risk considerations.1.5 MortgageRepayment of the debt of other potential resources and the resources provided by the additional security. Refuse or insolvent debtor can be used as mortgage/collateral assets, for no credit record (such as trading for the first time) or credit record disputed the debtor2 The commercial bank credit risk management processIn order to effective credit risk management, commercial Banks should grasp the basic application of credit risk management. In general, the credit risk management process can be divided into credit credit risk identification, risk estimate and credit risk handling three phases:2.1 Credit risk identificationCredit risk identification is before in all kinds of credit risk, the risk types and to determine the cause of occurrence of a risk, analysis, in order to achieve the credit risk measurement and processing. Credit risk identification is a qualitative analysis of the risk, is the first step of credit risk management, which is the basis for the rest of the credit risk management. Customer rating system and credit risk classification of the two dimensional rating system is constitute the important content of risk identification. This chapter will make detailed description of the two parts. Before the credit investigation is the commercial bank credit risk identification is the most basic steps, bank loans to the customer before must know the borrowing needs of the clients and purpose. Credit investigation before the concrete has the following contents: understand the purpose of credit, credit purpose including: type, in line with the needs of the business purpose and credit product mix and match the borrower repayment source of credit and credit term and effective mortgage guarantee/warranty or other intangible support.2.2 Credit risk estimateCredit risk estimation is the possibility of Banks in credit risk and the fact that the risk to evaluate the extent of the losses caused by measurement. Its basic requirements: it is estimated that some expected risk the possibility of credit; 2 it is to measure some credit risk fact may cause the loss of the scale. Objective that is both a difficult problem, but such as is not an appraisal, can't the quantitative corresponding countermeasures to prevent and eliminate. With the development of risk management techniques, in the financial markets open, Vietnam's financial regulators and commercial Banks also pay more and more attention to the risk of quantitative, in credit rating and have a certain progress in capital adequacy.Before Banks to make loans to customers, Banks must also understand the purpose of the customer, more understand the usage of loan customers, whether it is feasible, from now on, find a way to manage future loans to avoid the violation of the customer. As a result, Banks should use the loan examination and approval way to deal with.2.3 The processing of credit riskCredit risk after processing is that the Banks in the recognition and valuation risk, the effective measures taken by different for different size of loan risk take different processing method, make the credit risk is reduced to the lowest degree. Risk treatment methods mainly include: risk transfer refers to the bank assumes the credit risk on to others in some way. Transfer way, it is transferred to the customer, such as Banks to raise interest rates, require the borrower to provide mortgage, pledge or other additional conditions, etc.; 2 it is transferred to the insurance company, the bank will those particularly risky, once happened will loss serious loans directly to the insurance company insured, or by the customer to the insurance company insured to transfer risk;3 Commercial bank credit risk management regulation.In the risk management of commercial Banks to improve themselves at the same time, regulators and external credit rating agencies to the commercial bank credit risk management has a different regulation method.3.1 The China banking regulatory commission five classificationsThe CBRC requires commercial Banks asset quality for five categories, to reflect the face possible credit losses. System is classifying loans into five categories according to the inherent risk level could be divided into normal commercial loans, concern, loss of secondary, suspicious, five categories.The China banking regulatory commission five classifications has the advantage that the bank asset quality can be compared more easily, also can take credit quality ofthe whole global. Disadvantage is that some small and medium-sized Banks because of the lack of independent audit and internal audit, classification standard is difficult to unity, the China banking regulatory commission five classifications often find selective examination questions.3.2 Stress tests, a rating agencyRating agencies will be according to the information disclosure and audit results and adjusting the bank's credit rating. Stress test is a credit rating agency for checking the quality of commercial bank credit and common ways of anti-risk ability. Because of the influence of the stress tests, for what has happened, to predict the result may worsen the credit quality; Or for the possibility of events, predict the results of the impact of credit quality. Similar stress tests include, an industry is a strong shock cases the possibility of default, or large credit customer default could lead to credit quality decline.3.3 The new Basel capital accordNew Basel capital agreement hereinafter referred to as the new Basel agreement (hereinafter referred to as Basel II) in English, is by the bank for international settlements under the Basel committee on banking supervision (BCBS), and content for 1988 years the old Basel capital accord (Basel I) have had to make significant changes, in order to standardize the international risk management system, improve the international financial services of risk management ability.译文商业银行信贷风险管理作者:Cornett M, Strahan P摘要信贷风险是商业银行经营过程中所面临的最主要的风险之一。
商业银行操作风险管理指引-英文
商业银行操作风险管理指引-英文Guidelines on Operational Risk Management of Commercial BanksChapter I General ProvisionsArticle 1 Pursuant to the Law of the People’s Republic of China on Banking Regulation and Supervision, the Law of the People’s Republic of China on Commercial Banks as well as other applicable laws and regulations, the Guidelines are formulated so as to enhance the operational risk management of commercial banks.Article 2 The Guidelines apply to domestic commercial banks, wholly foreign-funded banks and Chinese-foreign joint venture banks incorporated within the territory of the People’s Republic of China.Article 3 The operational risk in the Guidelines refers to the risk of loss resulting from inadequate or failed internal processes, people and IT system, or from external events. It includes legal risk but excludes strategic and reputational risk.Article 4 The China Banking Regulatory Commission (hereinafter referred to as the “CBRC”) supervises and regulates the operationalrisk management of commercial banks and evaluates the effectiveness thereof under its authority by law.Chapter II Operational Risk ManagementArticle 5 Commercial banks should, in line with the Guidelines, set up an operational risk management system suitable to their own business nature, scale and complexity to effectively identify, assess, monitor and control/mitigate operational risk. This system can be in any form, but shouldcomprise at least the following basic elements:1)oversight and control by the board of directors;2)roles and responsibilities of senior management;3)appropriate organizational structure;4)operational risk management policies, methods, and procedures;and5)requirements on making capital provisions for operational risk.Article 6 The board of directors in a commercial bank should treat operational risk as a major risk and charge the ultimate responsibility for monitoring the effectiveness of operational risk management. The responsibilities of the board shall include:1) developing strategies and general policies for bank-wideoperational risk management that are aligned with the bank’sstrategic goals;2) reviewing and approving the senior management’s functions,authorization and reporting arrangement with regard to operational risk management so as to ensure the effectiveness of the bank’s decision-making system in operational risk management and ensure that the operational risk facing the bank’s operations is controlled within it s endurance capacity; 3) reviewing regularly the operational risk reports submitted by thesenior management; fully understanding the bank’s overall operational risk management and the effectiveness of the senior management in handling material operational risk events; and monitoring and evaluating the effectiveness of daily operationalrisk management;4) ensuring that the senior management takes necessary measuresto effectively identify, assess, monitor and control/mitigate operational risk;5) ensuring that the bank’s operational risk m anagement system iseffectively audited and overseen by internal audit department;and6) having in place an appropriate reward-punishment system so asto effectively promote the development of operational risk management system in the bank as a whole.Article 7 The senior management in a commercial bank isresponsible for implementing the operational risk management strategies, general policies and running the system approved by theboard. It shall:1) be ultimately responsible to the board regarding daily operationalrisk management;2) lay out and regularly review the operational risk managementpolicies, procedures and detailed processes in accordance with the strategies and general policies developed by the board, and oversee the implementation thereof, and submitting to the board reports on overall operational risk management in a regularmanner;3) sufficiently understand the overall situation of the bank’soperational risk management, particularly the events or programswith material operational risk;4) Clearly define each department’s responsibilities in operationalrisk management as well as the reporting line, frequency and contents; urge each department to really charge its responsibilities in a bid to ensure the sound performance of the operational risk management system;5) equip operational risk management with appropriate resources,including but not limited to providing necessary funds, setting up necessary positions with eligible staff, offering training courses to operational risk management personnel, delegating authorizaion to the said personnel to fulfill their duties, etc.; and6) make promptly checks and revision on the operational riskmanagement system so as to effectively respond to operational risk events brought about by the changes of internal procedures, products, business activities, IT system, staff, external events orother factors.Article 8 Commercial banks should designate a certain department to be responsible for the construction and implementation of operational risk management system. This department should be independent from others in order to ensure the system’s consistency and effectiveness. Its responsibilities shall mainly include:1) drafting operational risk management policies, procedures andspecific processes and submitting them to the senior management and the board for review and approval;2) assisting other departments to identify, assess, monitor andcontrol/mitigate operational risk;3) working out methods to identify, assess, mitigate (includinginternal controls) and monitor operational risks, formulating bank-wide reporting processes of operational risk and organizing the implementation thereof;4) putting in place basic criteria for operational risk control over thebank, and guiding and coordinating the operational riskmanagement;5) providing each department with trainings on operational riskmanagement, and helping them improve operational risk management capacity and fulfill their own duties;6) regularly checking and analyzing the practices of operational riskmanagement in business departments and other departments;7) regularly submitting operational risk reports to seniormanagement; and8) ensuring that the operational risk management system andmeasures are observed.Article 9 The relevant departments in a commercial bank should be directly responsible for operational risk management. Majorresponsibilities include:1) appointing designated staff to take charge of operational riskmanagement, including observing operational risk management policies, procedures and specific processes;2) following the assessment methods for operational riskmanagement to identify and assess the operational risks in the departments, and to have in place an effective on-going procedure to monitor, control/mitigate and report operational risks, thenorganize the implementation thereof;3) fully considering the requirements on operational riskmanagement and internal control when making department specific business processes and related business policies, with a view to ensuring operational risk management personnel at all levels participate in the course of reviewing and approving important procedures, controls and policies, thus making these aligned with the bank’s general policy o n operational risk management; and4) monitoring key risk indicators and regularly reporting their owndepartment’s operational risk management situation to the department which takes charge of or take the leading role in operational risk management of the whole bank.Article 10 The legal office, compliance office, IT office, security office, and human resource office in a commercial bank should, besides properly managing their own operational risks, provide relevant resources and assistance within their strength and respective responsibilities to other departments for the purpose of operationalrisk management.Article 11 The internal audit department in a commercial bank does not directly take charge of or participate in other departments’ operational risk management, but it should regularly check and evaluate how well the bank’s operational risk management system operates, supervise the implementation of operational riskmanagement policies, independently evaluate the bank’s newoperational risk management policies, processes and specific procedures, and report to the board of directors the evaluation results of operational risk management system.A commercial bank with high business complexity and large scale is encouraged to entrust intermediary agencies to audit and evaluate its operational risk management system on a regular basis.Article 12 A commercial bank should have in place bank-wide operational risk management policies that are commensurate with its nature, scale, complexity and risk profile. Main contents include:1) definition of operational risk;2) appropriate organizational structure, authorization andresponsibilities with regard to operational risk management;3) procedures to identify, assess, monitor and control/mitigateoperational risks;4) reporting procedures of operational risk, including reportingresponsibilities, path and frequency, and other specificrequirements on other departments; and5) requirements on promptly assessing operational risks associatedwith existing and newly-developed important products, business practices, procedures, IT system, human resource management,external factors and changes thereof.Article 13 A commercial bank should choose appropriate approaches to manage operational risks, which may include: assessment of operational risk and internal control, loss event reporting and data collection, monitoring of key risk indicators, risk assessment regarding new products and business practices, testing and audit of internal control, and operational risk reporting.Article 14 A commercial bank with high business complexity and large scale should adopt more sophisticated risk management methods (e.g. quantitative methods) to assess each department’s operational risk, collect operational risk loss data, and make arrangements according to the characteristics of operational riskassociated with each line of business.Article 15 A commercial bank should develop effective processes to regularly monitor and report operational risk status and material losses. As to risks with increasing loss potential, early-warning system of operational risk should be put in place so as to take timely controls to mitigate risk and reduce the occurrence and severity ofloss events.Article 16 Material operational risk events should be reported to the board, senior management and appropriate management personnel according to the bank’s operationalrisk management policies.Article 17 A commercial bank should enhance internal control for effective operational risk management. Related internal controlsshould at least include:1) clearly defining the roles and responsibilities of each departmentand making proper separation among relevant functions so as toavoid potential conflicts of interests;2) closely watching how well specified risk limit or authorization isobserved;3) monitoring the records of access to and use of the bank’s assets;4) ensuring the staff are appropriately trained and eligible for theirpositions;5) identifying the business activities or products that do not generatereasonable prospective returns or that contain potential risks;6) regularly reviewing and checking up transactions and accounts;7) putting in place a system for the heads and the staff in keypositions to have job rotation and compulsory leaves and setting up a mechanism of off-job auditing as well;8) working out a code of conduct to regulate on-job and off-jobbehavior particularly for the staff in important positions or at sensitive links;9) establishing an incentive and protection system to encouragestaff to report violations on a real-name basis;10) setting up a dual-appraisal system to investigate and solve bankfraudulent cases as well as make punishments in a timely and proper manner;11) having in place an information disclosure system for the bankcase investigation; and12) e stablishing an incentive-restrictive mechanism with regard to themanagement and control of operational risk at front line.Article 18 A commercial bank should establish and gradually improve the operational risk management information system (MIS) so as to effectively identify, assess, monitor, control and report operational risks. The system should at least record and store the date about operational risk losses and events, support self-assessment on operational risk and control measures, monitor key risk indicators, and provide relevant information contained in operational riskreports.Article 19 To ensure business continuation, a commercial bank should develop a scheme for emergency response that matches their business scale and complexity, make a back-up arrangement for service recovery, and regularly check and test the catastrophe recovery function and business continuation mechanism so as to make sure that these actions can go in operation properly in the event of catastrophe and severe business disruption.Article 20 A commercial bank should develop risk management policies with regard to outsourcing practices in order to make sure that outsourcing is subject to rigorous contracts and service agreements which clearly specify the obligations of involved parties.Article 21 A commercial bank may purchase insurance and enter into contract with a third party, and consider it a way to mitigate operational risk. But they should by no means neglect the importanceof controls.A commercial bank that mitigates operational risks by means ofinsurance should formulate written policies and procedures accordingly.Article 22 A commercial bank should make adequate capital provisions for the operational risk it undertakes as per the requirements of CBRC on capital adequacy of commercial banks.Chapter III Supervision of Operational RiskArticle 23 Commercial banks should submit to the CBRC their operational risk management policies and processes for filing. They should submit operational risk related reports to the CBRC or its local offices as per regulations. Banks that entrust intermediary agencies to audit their operational risk management system should also submit audit reports to the CBRC or its local offices.Article 24 Commercial banks should promptly report to the CBRC or its local offices about the following material operational risk events ifany:1) banking crimes in which more than RMB300,000 is robbedcommercial bank or cash truck or stolen from a banking financial institution; bank fraud or other cases involving an amount of morethan RMB10 million;2) events that result in serious damage or loss of the bank’simportant data, books, blank vouchers, or business disruption for over three hours in two or more provinces (autonomous regions/municipalities), or business disruption for over six hours in one province (autonomous region/municipality) and severelyaffect the bank’s normal operations;3) confidential information being stolen, sold, leaked or lost that mayaffect financial stability and lead to economic disorder;4) senior executives severely violating applicable regulations;5) accident or natural catastrophe caused by force majeure, resultingin immediate economic loss of more than RMB10 million;6) other operational risk events that may result in a loss of more than1‰ of the bank’s net capital; and7) other material events as specified by the CBRC.Article 25 The CBRC should regularly check and assess the operational risk management policies, processes and practices of commercial banks. Main items to be checked and assessed include:1) effectiveness of the bank’s operational risk managementprocesses;2) the bank’s approaches to monitor and report operationalincluding key operational risk indicators and operational risk lossdata;3) the bank’s measures to timely and effectively handle operationalrisk events and weak links;4) the bank’s procedures of internal control, reviewing and auditingwithin its operational risk management processes;5) the quality and comprehensiveness of the bank’s catastropherecovery and business continuation plans;6) adequacy level of capital provisions for operational risks; and7) other aspects of operational risk management.Article 26 As to the operational risk management problems discovered by the CBRC during supervision, the commercial bank should submit correction plan and take correction actions within thespecified time limit.When a material operational risk event occurs, if the commercial bank fails to adopt effective correction measures within the specified time limit, the CBRC should take appropriate regulatory actions in line withlaws and regulations.Chapter IV Supplementary ProvisionsArticle 27 This Guidelines may apply to other banking institutions including policy banks, financial asset management companies, urban credit cooperatives, rural credit cooperatives,rural cooperative banks, trust and investment companies, finance firms, financial leasing companies, automobile financial companies, money brokers, and postsavings institutions.Article 28 Banking institutions without the board of directors should have their operating decision-making bodies perform the responsibilities of the board with regard to operational risk management specified herein.Article 29 Branches set up by foreign banks within the territory of People’s Republic of China should follow the operational risk management policies and processes developed by their head offices, report to the CBRC or its local offices about material operational risk events, and accept the supervision of the CBRC. Where their head offices do not lay out operational risk management policies andprocesses, such branches should comply with the Guidelines.Article 30 Relevant terms mentioned herein are defined in theAppendix.Article 31 The Guidelines shall become effective as of the date ofpromulgation.Appendix: Definitions of Relevant Terms1.Operational risk eventsOperational risk events refer to the operational events resulting from inadequate or failed internal processes, people and IT system, or from external factors, which bring about financial losses or affect the bank’s reputation, clients and staff. Specific events include: internal fraud, external fraud, employment practices and workplace safety, clients, products &business practices, damages to physical assets, business disruption and system failures, execution, delivery & process management (see Annex 7 –Detailed Loss Event Type Classification of The International Convergence of Capital Measurement and Capital Standards: A Revised Framework or the New Basel Capital Accord).2.self-assessment on risk, key risk indicatorsTools used by commercial banks to identify and assess operationalrisks.1) self-assessment on riskSelf-assessment on risk is a tool for operational risk management by commercial banks to identify and assess the control measures and appropriateness and effectiveness thereof with regard to potential operational risk and their own business practices.2) Key Risk IndicatorKey risk indicators refer to the statistical indicators that represent the changes in a certain area of risk and can be monitored on a regular basis. These indicators can be used to monitor various risks and control measures that may result in loss events and to function as early-warning indicators for risk changes (so that senior management can take timely actions accordingly). Examples of specific indicators: loss ratio per RMB100 million asset, number of banking crimes per 10,000 people, ratio of the cases with each involving a cash value of RMB1 million, number of transactions unconfirmed beyond a certain。
商业银行风险管理外文及翻译
外文文献翻译Commercial Bank Risk Management: An Analysis of the Process外文文献:Commercial Bank Risk Management:An Analysis of the Process AbstractThroughout the past year, on-site visits to financial service firms were conducted to review and evaluate their financial risk management systems。
The commercial banking analysis covered a number of North American super-regionals and quasi±money—center institutions as well as several firms outside the U。
S。
The information obtained covered both the philosophy and practice of financial risk management. This article outlines the results of this investigation。
It reports the state of risk management techniques in the industry。
It reports the standard of practice and evaluates how and why it is conducted in the particular way chosen。
In addition,critiques are offered where appropriate. We discuss the problems which the industry finds most difficult to address, shortcomings of the current methodology used to analyze risk,and the elements that are missing in the current procedures of risk management.1。
(2006年)商业银行市场风险管理指引-英文版
5. appropriate mechanism for market risk capital allocation.
Article 7In carrying out market risk management, a commercial bank shall give due consideration to the correlation of market risks with other types of risks such as credit risks, liquidity risks, operational risks, legal risks and reputation risks, and coordinate the policies and procedures for the management of market risks with those for the management of other types of risks.
PART TWOMARKET RISK MANAGEMENT
Article 6Commercial banks shall, pursuant to the requirements hereof, establish a sound and reliable market risk management system commensurate with the nature, scale and complexity of the business. A market risk management system shall include the following basic elements:
商业银行操作风险管理指引-英文
Guidelines on Operational Risk Management of CommercialBanksChapter I General ProvisionsArticle 1 Pursuant to the Law of the People’s Republic of China on Banking Regulation and Supervision, the Law of the People’s Republic of China on Commercial Banks as well as other applicable laws and regulations, the Guidelines are formulated so as to enhance the operational risk management of commercial banks.Article 2 The Guidelines apply to domestic commercial banks, wholly foreign-funded banks and Chinese-foreign joint venture banks incorporated within the territory of the People’s Republic of China.Article 3 The operational risk in the Guidelines refers to the risk of loss resulting from inadequate or failed internal processes, people and IT system, or from external events. It includes legal risk but excludes strategic and reputational risk.Article 4 The China Banking Regulatory Commission (hereinafter referred to as the “CBRC”) supervises and regulates the operationalrisk management of commercial banks and evaluates the effectiveness thereof under its authority by law.Chapter II Operational Risk ManagementArticle 5 Commercial banks should, in line with the Guidelines, set up an operational risk management system suitable to their own business nature, scale and complexity to effectively identify, assess, monitor and control/mitigate operational risk. This system can be in any form, but should comprise at least the following basic elements:1)oversight and control by the board of directors;2)roles and responsibilities of senior management;3)appropriate organizational structure;4)operational risk management policies, methods, and procedures;and5)requirements on making capital provisions for operational risk.Article 6 The board of directors in a commercial bank should treat operational risk as a major risk and charge the ultimate responsibility for monitoring the effectiveness of operational risk management. The responsibilities of the board shall include:1) developing strategies and general policies for bank-wideoperational risk management that are aligned with the bank’sstrategic goals;2) reviewing and approving the senior management’s functions,authorization and reporting arrangement with regard to operational risk management so as to ensure the effectiveness of the bank’s decision-making system in operational risk management and ensure that the operational risk facing thebank’s operations is controlled within its endurance capacity; 3) reviewing regularly the operational risk reports submitted by thesenior management; fully understanding the bank’s overall operational risk management and the effectiveness of the senior management in handling material operational risk events; and monitoring and evaluating the effectiveness of daily operationalrisk management;4) ensuring that the senior management takes necessary measuresto effectively identify, assess, monitor and control/mitigateoperational risk;5) ensuring that the bank’s operational risk m anagement system iseffectively audited and overseen by internal audit department;and6) having in place an appropriate reward-punishment system so asto effectively promote the development of operational risk management system in the bank as a whole.Article 7 The senior management in a commercial bank isresponsible for implementing the operational risk management strategies, general policies and running the system approved by theboard. It shall:1) be ultimately responsible to the board regarding daily operationalrisk management;2) lay out and regularly review the operational risk managementpolicies, procedures and detailed processes in accordance with the strategies and general policies developed by the board, and oversee the implementation thereof, and submitting to the board reports on overall operational risk management in a regularmanner;3) sufficiently understand the overall situation of the bank’soperational risk management, particularly the events or programswith material operational risk;4) Clearly define each department’s responsibilities in operationalrisk management as well as the reporting line, frequency andcontents; urge each department to really charge its responsibilities in a bid to ensure the sound performance of theoperational risk management system;5) equip operational risk management with appropriate resources,including but not limited to providing necessary funds, setting up necessary positions with eligible staff, offering training courses to operational risk management personnel, delegating authorizaion to the said personnel to fulfill their duties, etc.; and6) make promptly checks and revision on the operational riskmanagement system so as to effectively respond to operational risk events brought about by the changes of internal procedures, products, business activities, IT system, staff, external events orother factors.Article 8 Commercial banks should designate a certain department to be responsible for the construction and implementation of operational risk management system. This department should be independent from others in order to ensure the system’s consistency and effectiveness. Its responsibilities shall mainly include:1) drafting operational risk management policies, procedures andspecific processes and submitting them to the senior management and the board for review and approval;2) assisting other departments to identify, assess, monitor andcontrol/mitigate operational risk;3) working out methods to identify, assess, mitigate (includinginternal controls) and monitor operational risks, formulating bank-wide reporting processes of operational risk and organizingthe implementation thereof;4) putting in place basic criteria for operational risk control over thebank, and guiding and coordinating the operational riskmanagement;5) providing each department with trainings on operational riskmanagement, and helping them improve operational risk management capacity and fulfill their own duties;6) regularly checking and analyzing the practices of operational riskmanagement in business departments and other departments;7) regularly submitting operational risk reports to seniormanagement; and8) ensuring that the operational risk management system andmeasures are observed.Article 9 The relevant departments in a commercial bank should be directly responsible for operational risk management. Majorresponsibilities include:1) appointing designated staff to take charge of operational riskmanagement, including observing operational risk management policies, procedures and specific processes;2) following the assessment methods for operational riskmanagement to identify and assess the operational risks in the departments, and to have in place an effective on-going procedure to monitor, control/mitigate and report operational risks, thenorganize the implementation thereof;3) fully considering the requirements on operational riskmanagement and internal control when making department specific business processes and related business policies, with a view to ensuring operational risk management personnel at alllevels participate in the course of reviewing and approvingimportant procedures, controls and policies, thus making these aligned with the bank’s general policy on operational riskmanagement; and4) monitoring key risk indicators and regularly reporting their owndepartment’s operational risk management situation to thedepartment which takes charge of or take the leading role in operational risk management of the whole bank.Article 10 The legal office, compliance office, IT office, security office, and human resource office in a commercial bank should, besides properly managing their own operational risks, provide relevant resources and assistance within their strength and respective responsibilities to other departments for the purpose of operationalrisk management.Article 11 The internal audit department in a commercial bank does not directly take charge of or participate in other departments’ operational risk management, but it should regularly check and evaluate how well the bank’s operational risk management system operates, supervise the implementation of operational riskmanagement policies, independently evaluate the bank’s newoperational risk management policies, processes and specific procedures, and report to the board of directors the evaluation results of operational risk management system.A commercial bank with high business complexity and large scale is encouraged to entrust intermediary agencies to audit and evaluate its operational risk management system on a regular basis.Article 12 A commercial bank should have in place bank-wide operational risk management policies that are commensurate with its nature, scale, complexity and risk profile. Main contents include:1) definition of operational risk;2) appropriate organizational structure, authorization andresponsibilities with regard to operational risk management;3) procedures to identify, assess, monitor and control/mitigateoperational risks;4) reporting procedures of operational risk, including reportingresponsibilities, path and frequency, and other specificrequirements on other departments; and5) requirements on promptly assessing operational risks associatedwith existing and newly-developed important products, business practices, procedures, IT system, human resource management,external factors and changes thereof.Article 13 A commercial bank should choose appropriate approaches to manage operational risks, which may include: assessment of operational risk and internal control, loss event reporting and data collection, monitoring of key risk indicators, risk assessment regarding new products and business practices, testing and audit of internal control, and operational risk reporting.Article 14 A commercial bank with high business complexity and large scale should adopt more sophisticated risk management methods (e.g. quantitative methods) to assess each department’s operational risk, collect operational risk loss data, and make arrangements according to the characteristics of operational riskassociated with each line of business.Article 15 A commercial bank should develop effective processes to regularly monitor and report operational risk status and material losses. As to risks with increasing loss potential, early-warning system of operational risk should be put in place so as to take timely controls to mitigate risk and reduce the occurrence and severity ofloss events.Article 16 Material operational risk events should be reported to the board, senior management and appropriate management personnel according to the bank’s operational risk management policies.Article 17 A commercial bank should enhance internal control for effective operational risk management. Related internal controlsshould at least include:1) clearly defining the roles and responsibilities of each departmentand making proper separation among relevant functions so as toavoid potential conflicts of interests;2) closely watching how well specified risk limit or authorization isobserved;3) monitoring the records of access to and use of the bank’s assets;4) ensuring the staff are appropriately trained and eligible for theirpositions;5) identifying the business activities or products that do not generatereasonable prospective returns or that contain potential risks;6) regularly reviewing and checking up transactions and accounts;7) putting in place a system for the heads and the staff in keypositions to have job rotation and compulsory leaves and setting up a mechanism of off-job auditing as well;8) working out a code of conduct to regulate on-job and off-jobbehavior particularly for the staff in important positions or atsensitive links;9) establishing an incentive and protection system to encouragestaff to report violations on a real-name basis;10) setting up a dual-appraisal system to investigate and solve bankfraudulent cases as well as make punishments in a timely andproper manner;11) having in place an information disclosure system for the bankcase investigation; and12) e stablishing an incentive-restrictive mechanism with regard to themanagement and control of operational risk at front line.Article 18 A commercial bank should establish and gradually improve the operational risk management information system (MIS) so as to effectively identify, assess, monitor, control and report operational risks. The system should at least record and store the date about operational risk losses and events, support self-assessment on operational risk and control measures, monitor key risk indicators, and provide relevant information contained in operational riskreports.Article 19 To ensure business continuation, a commercial bank should develop a scheme for emergency response that matches their business scale and complexity, make a back-up arrangement for service recovery, and regularly check and test the catastrophe recovery function and business continuation mechanism so as to make sure that these actions can go in operation properly in the event of catastrophe and severe business disruption.Article 20 A commercial bank should develop risk management policies with regard to outsourcing practices in order to make sure that outsourcing is subject to rigorous contracts and service agreements which clearly specify the obligations of involved parties.Article 21 A commercial bank may purchase insurance and enter into contract with a third party, and consider it a way to mitigate operational risk. But they should by no means neglect the importanceof controls.A commercial bank that mitigates operational risks by means ofinsurance should formulate written policies and proceduresaccordingly.Article 22 A commercial bank should make adequate capitalprovisions for the operational risk it undertakes as per the requirements of CBRC on capital adequacy of commercial banks.Chapter III Supervision of Operational RiskArticle 23 Commercial banks should submit to the CBRC their operational risk management policies and processes for filing. They should submit operational risk related reports to the CBRC or its local offices as per regulations. Banks that entrust intermediary agencies to audit their operational risk management system should also submit audit reports to the CBRC or its local offices.Article 24 Commercial banks should promptly report to the CBRC or its local offices about the following material operational risk events ifany:1) banking crimes in which more than RMB300,000 is robbed from acommercial bank or cash truck or stolen from a banking financial institution; bank fraud or other cases involving an amount of morethan RMB10 million;2) events that result in serious damage or loss of the bank’simportant data, books, blank vouchers, or business disruption for over three hours in two or more provinces (autonomous regions/municipalities), or business disruption for over six hours in one province (autonomous region/municipality) and severelyaffect the bank’s normal operations;3) confidential information being stolen, sold, leaked or lost that mayaffect financial stability and lead to economic disorder;4) senior executives severely violating applicable regulations;5) accident or natural catastrophe caused by force majeure, resultingin immediate economic loss of more than RMB10 million;6) other operational risk events that may result in a loss of more than1‰ of the bank’s net capital; and7) other material events as specified by the CBRC.Article 25 The CBRC should regularly check and assess the operational risk management policies, processes and practices of commercial banks. Main items to be checked and assessed include:1) effectiveness of the bank’s operational risk managementprocesses;2) the bank’s approaches to monitor and report operational risks,including key operational risk indicators and operational risk lossdata;3) the bank’s measures to timely and effectively handle operationalrisk events and weak links;4) the bank’s procedures of internal control, reviewing and auditingwithin its operational risk management processes;5) the quality and comprehensiveness of the bank’s catastropherecovery and business continuation plans;6) adequacy level of capital provisions for operational risks; and7) other aspects of operational risk management.Article 26 As to the operational risk management problems discovered by the CBRC during supervision, the commercial bank should submit correction plan and take correction actions within thespecified time limit.When a material operational risk event occurs, if the commercial bank fails to adopt effective correction measures within the specified time limit, the CBRC should take appropriate regulatory actions in line withlaws and regulations.Chapter IV Supplementary ProvisionsArticle 27 This Guidelines may apply to other banking institutions including policy banks, financial asset management companies, urban credit cooperatives, rural credit cooperatives, rural cooperative banks, trust and investment companies, finance firms, financial leasing companies, automobile financial companies, money brokers, and postsavings institutions.Article 28 Banking institutions without the board of directors should have their operating decision-making bodies perform theresponsibilities of the board with regard to operational riskmanagement specified herein.Article 29 Branches set up by foreign banks within the territory of People’s Republic of China should follow the operational risk management policies and processes developed by their head offices, report to the CBRC or its local offices about material operational risk events, and accept the supervision of the CBRC. Where their head offices do not lay out operational risk management policies andprocesses, such branches should comply with the Guidelines.Article 30 Relevant terms mentioned herein are defined in theAppendix.Article 31 The Guidelines shall become effective as of the date ofpromulgation.Appendix: Definitions of Relevant Terms1.Operational risk eventsOperational risk events refer to the operational events resulting from inadequate or failed internal processes, people and IT system, or from external factors, which bring about financial losses or affect the bank’s reputation, clients and staff. Specific events include: internal fraud, external fraud, employment practices and workplace safety, clients, products & business practices, damages to physical assets, business disruption and system failures, execution, delivery & process management (see Annex 7 – Detailed Loss Event Type Classification of The International Convergence of Capital Measurement and Capital Standards: A Revised Framework or the New Basel Capital Accord).2.self-assessment on risk, key risk indicatorsTools used by commercial banks to identify and assess operationalrisks.1) self-assessment on riskSelf-assessment on risk is a tool for operational risk management by commercial banks to identify and assess the control measures and appropriateness and effectiveness thereof with regard to potential operational risk and their own business practices.2) Key Risk IndicatorKey risk indicators refer to the statistical indicators that represent the changes in a certain area of risk and can be monitored on a regular basis. These indicators can be used to monitor various risks and control measures that may result in loss events and to function as early-warning indicators for risk changes (so that senior management can take timely actions accordingly). Examples of specific indicators: loss ratio per RMB100 million asset, number of banking crimes per 10,000 people, ratio of the cases with each involving a cash value of RMB1 million, number of transactions unconfirmed beyond a certaintime limit, percentage of failed transactions, staff turnover, number of client complaints, frequency and severity of errors and omissions, etc.3.Legal RiskLegal risk includes, but is not limited to, the following: 1) the contract signed by a commercial bank violating laws or administrative regulations and therefore being probably cancelled or confirmed invalid according to law; 2) the bank being sued or in arbitration because of its breach of contract, infringement or other reasons and held liable for compensation according to law; 3) the bank’s business practices violating laws or administrative regulations and therefore being held liable administratively or criminally.。
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外文文献翻译Commercial Bank Risk Management: An Analysis of the Process外文文献:Commercial Bank Risk Management: An Analysis of the Process AbstractThroughout the past year, on-site visits to financial service firms were conducted to review and evaluate their financial risk management systems. The commercial banking analysis covered a number of North American super-regionals and quasi±money-center institutions as well as several firms outside the U.S. The information obtained covered both the philosophy and practice of financial risk management. This article outlines the results of this investigation. It reports the state of risk management techniques in the industry. It reports the standard of practice and evaluates how and why it is conducted in the particular way chosen. In addition, critiques are offered where appropriate. We discuss the problems which the industry finds most difficult to address, shortcomings of the current methodology used to analyze risk, and the elements that are missing in the current procedures of risk management.1. IntroductionThe past decade has seen dramatic losses in the banking industry. Firms that had been performing well suddenly announced large losses due to credit exposures that turned sour, interest rate positions taken, or derivative exposures that may or may not have been assumed to hedge balance sheet risk. In response to this, commercial banks have almost universally embarked upon an upgrading of their risk management and control systems.Coincidental to this activity, and in part because of our recognition of the industry's vulnerability to financial risk, the Wharton Financial Institutions Center, with the support of the Sloan Foundation, has been involved in an analysis of financial risk management processes in the financial sector. Through the past academic year, on-site visits were conducted to review and evaluate the risk management systems and the process of risk evaluation that is in place. In the banking sector, system evaluation was conducted covering many of North America'ssuper-regionals and quasi±money-center commercial banks, as well as a number of major investment banking firms. These results were then presented to a much wider array of banking firms for reaction and verification. The purpose of the present article is to outline the findings of this investigation. It reports the state of risk management techniques in the industry—questions asked, questions answered, and questions left unaddressed by respondents. This report can not recite a litany of the approaches used within the industry, nor can it offer an evaluation of each and every approach. Rather, it reports the standard of practice and evaluates how and why it is conducted in the particular way chosen. But, even the best practice employed within the industry is not good enough in some areas. Accordingly, critiques also will be offered where appropriate. The article concludes with a list of questions that are currently unanswered, or answered imprecisely in the current practice employed by this group of relatively sophisticated banks. Here, we discuss the problems which the industry finds most difficult to address, shortcomings of the current methodology used to analyze risk, and the elements that are missing in the current procedures of risk management and risk control.2. What type of risk is being considered?Commercial banks are in the risk business. In the process of providing financial services, they assume various kinds of financial risks. Over the last decade our understanding of the place of commercial banks within the financial sector has improved substantially. Over this time, much has been written on the role of commercial banks in the financial sector, both in the academic literature and in the financial press. These arguments will be neither reviewed nor enumerated here. Suffice it to say that market participants seek the services of these financial institutions because of their ability to provide market knowledge, transaction efficiency and funding capability. In performing these roles, they generally act as a principal in the transaction. As such, they use their own balance sheet to facilitate the transaction and to absorb the risks associated with it.To be sure, there are activities performed by banking firms which do not have direct balance sheet implications. These services include agency and advisoryactivities such as(1) trust and investment management;(2) private and public placements through ``bestefforts'' or facilitating contracts;(3) standard underwriting through Section 20 Subsidiaries of the holding company;(4) the packaging, securitizing, distributing, and servicing of loans in the areas of consumer and real estate debt primarily.These items are absent from the traditional financial statement because the latter rely on generally accepted accounting procedures rather than a true economic balance sheet. Nonetheless,the overwhelming majority of the risks facing the banking firm are on-balance-sheet businesses. It is in this area that the discussion of risk management and of the necessary procedures for risk management and control has centered. Accordingly, it is here that our review of risk management procedures will concentrate.3. What kinds of risks are being absorbed?The risks contained in the bank's principal activities, i.e., those involving its own balance sheet and its basic business of lending and borrowing, are not all borne by the bank itself. In many instances the institution will eliminate or mitigate the financial risk associated with a transaction by proper business practices; in others, it will shift the risk to other parties through a combination of pricing and product design.The banking industry recognizes that an institution need not engage in business in amanner that unnecessarily imposes risk upon it; nor should it absorb risk that can be efficiently transferred to other participants. Rather, it should only manage risks at the firm level that are more efficiently managed there than by the market itself or by their owners in their own portfolios. In short, it should accept only those risks that are uniquely a part of the bank's array of services. Elsewhere (Oldfield and Santomero, 1997) it has been argued that risks facing all financial institutions can be segmented into three separable types, from a management perspective. These are:1. risks that can be eliminated or avoided by simple business practices;2. risks that can be transferred to other participants;3. risks that must be actively managed at the firm level.In the first of these cases, the practice of risk avoidance involves actions to reduce the chances of idiosyncratic losses from standard banking activity by eliminating risks that are superˉuous to the institution's business purpose. Common risk-avoidance practices here include at least three types of actions. The standardization of process, contracts, and procedures to prevent inefficient or incorrect financial decisions is the first of these. The construction of portfolios that benefit from diversification across borrowers and that reduce the effects of any one loss experience is another. The implementation of incentivecompatible contracts with the institution's management to require that employees be held accountable is the third. In each case, the goal is to rid the firm of risks that are not essential to the financial service provided, or to absorb only an optimal quantity of a particular kind of risk.There are also some risks that can be eliminated, or at least substantially reduced through the technique of risk transfer. Markets exist for many of the risks borne by the banking firm. Interest rate risk can be transferred by interest rate products such as swaps or other derivatives. Borrowing terms can be altered to effect a change in their duration.Finally, the bank can buy or sell financial claims to diversify or concentrate the risks that result from servicing its client base. To the extent that the financial risks of the assets created by the firm are understood by the market, these assets can be sold at their fair value. Unless the institution has a comparative advantage in managing the attendant risk and/or a desire for the embedded risk which they contain, there is no reason for the bank to absorb such risks, rather than transfer them.However, there are two classes of assets or activities where the risk inherent in the activity must and should be absorbed at the bank level. In these cases, good reasons exist for using firm resources to manage bank level risk. The first of these includes financial assets or activities where the nature of the embedded risk may be complex and difficult to communicate to third parties. This is the case when the bank holds complex and proprietary assets that have thin, if not nonexistent, secondarymarkets. Communication in such cases may be more difficult or expensive than hedging the underlying risk. Moreover, revealing information about the customer may give competitors an undue advantage. The second case includes proprietary positions that are accepted because of their risks, and their expected return. Here, risk positions that are central to the bank's business purpose are absorbed because they are the raison of the firm. Credit risk inherent in the lending activity is a clear case in point, as is market risk for the trading desk of banks active in certain markets. In all such circumstances, risk is absorbed and needs to be monitored and managed efficiently by the institution. Only then will the firm systematically achieve its financial performance goal.4. How are these risks managed?In light of the above, what are the necessary procedures that must be in place in order to carry out adequate risk management? In essence, what techniques are employed to both limit and manage the different types of risk, and how are they implemented in each area of risk control? It is to these questions that we now turn. After reviewing the procedures employed by leading firms, an approach emerges from an examination of large-scale risk management systems. The management of the banking firm relies on a sequence of steps to implement a risk management system. These can be seen as containing the following four parts:1. standards and reports,2. position limits or rules,3. investment guidelines or strategies, and4. incentive contracts and compensation.In general, these tools are established to measure exposure, define procedures to manage these exposures, limit individual positions to acceptable levels, and encourage decision makers to manage risk in a manner that is consistent with the firm's goals and objectives. To see how each of these four parts of basic risk-management techniques achieves these ends, we elaborate on each part of the process below. In section 4 we illustrate how these techniques are applied to manage each of the specific risks facing the banking community.1.Standards and reports.The first of these risk-management techniques involves two different conceptual activities, i.e., standard setting and financial reporting. They are listed together because they are the sine qua non of any risk system. Underwriting standards, risk categorizations, and standards of review are all traditional tools of risk management and control. Consistent evaluation and rating of exposures of various types are essential to an understanding of the risks in the portfolio, and the extent to which these risks must be mitigated or absorbed.The standardization of financial reporting is the next ingredient. Obviously, outside audits, regulatory reports, and rating agency evaluations are essential for investors to gauge asset quality and firm-level risk. These reports have long been standardized, for better or worse. However, the need here goes beyond public reports and audited statements to the need for management information on asset quality and risk posture. Such internal reports need similar standardization and much more frequent reporting intervals, with daily or weekly reports substituting for the quarterly GAAP periodicity.2.Position limits and rules.A second technique for internal control of active management is the use of position limits, and/or minimum standards for participation. In terms of the latter, the domain of risk taking is restricted to only those assets or counterparties that pass some prespecified quality standard. Then, even for those investments that are eligible, limits are imposed to cover exposures to counterparties, credits, and overall position concentrations relative to various types of risks. While such limits are costly to establish and administer, their imposition restricts the risk that can be assumed by anyone individual, and therefore by the organization as a whole. In general, each person who can commit capital will have a well-defined limit. This applies to traders, lenders,and portfolio managers. Summary reports show limits as well as current exposure by business unit on a periodic basis. In large organizations with thousands of positions maintained, accurate and timely reporting is difficult, but even more essential.3.Investment guidelines and strategies.Investment guidelines and recommended positions for the immediate future are the third technique commonly in use. Here, strategies are outlined in terms of concentrations and commitments to particular aras of the market, the extent of desired asset-liability mismatching or exposure, and the need to hedge against systematic risk of a particular type.4.Incentives schemes.To the extent that management can enter incentive compatible contracts with line managers and make compensation related to the risks borne by these individuals, then the need for elaborate and costly controls is lessened. However, such incentive contracts require accurate position valuation and proper internal control systems.中文译文:商业银行的风险管理:一个分析的过程摘要在过去一年里,我们通过现场参观金融服务公司来进行审查和评估其金融风险管理系统。