Chinese Commercial Banks and the Global Financial Crisis: What was their Risk Management before the Crisis? How do they Change afterwards?

Risk management plays a crucial role in the profit-earning activities of commercial banks. It contains three major types and each type requires different risk measurement tools. A successful and sustainable risk management system needs the enterprise-wide participation of employees and integration o...

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Main Author: WANG, Yiqiao
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2011
Online Access:https://eprints.nottingham.ac.uk/25067/
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author WANG, Yiqiao
author_facet WANG, Yiqiao
author_sort WANG, Yiqiao
building Nottingham Research Data Repository
collection Online Access
description Risk management plays a crucial role in the profit-earning activities of commercial banks. It contains three major types and each type requires different risk measurement tools. A successful and sustainable risk management system needs the enterprise-wide participation of employees and integration of all different components together with a deep-rooted culture. Moreover, risk management in commercial banks has the most authoritative practical guidelines—Basel Accords, which providing minimum capital requirements, risk measurement methodologies, supervision requirements, market disciplines, etc. Before the global financial crisis, Chinese commercial banks’ risk management system was significantly weak and attention was only put on credit risk control whereas other risks were despised. They still held non-ignorable amount of low quality assets with few lagging tools. Meanwhile, risk management culture was in absence within all commercial banks. Afterwards, the global financial crisis attacked the Chinese economy, giving Chinese banks a more complex financial environment with significantly higher risks than before. In response, Chinese commercial banks decided to follow the Basel Accord to reform and enhance their risk management system comprehensively and thoroughly. Their plan is to complete the Basel ll and lll implementation in following years, and simultaneously realize the Enterprise-wide Risk Management. On the other hand, since Chinese banking system has many remained inherent problems, the comprehensive application of Basel Accord might be questioned. Meanwhile, China still lacks a well-established and efficiently performed economic and political foundation to ensure the effectiveness of Basel Accord.
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spelling nottingham-250672018-01-05T21:51:13Z https://eprints.nottingham.ac.uk/25067/ Chinese Commercial Banks and the Global Financial Crisis: What was their Risk Management before the Crisis? How do they Change afterwards? WANG, Yiqiao Risk management plays a crucial role in the profit-earning activities of commercial banks. It contains three major types and each type requires different risk measurement tools. A successful and sustainable risk management system needs the enterprise-wide participation of employees and integration of all different components together with a deep-rooted culture. Moreover, risk management in commercial banks has the most authoritative practical guidelines—Basel Accords, which providing minimum capital requirements, risk measurement methodologies, supervision requirements, market disciplines, etc. Before the global financial crisis, Chinese commercial banks’ risk management system was significantly weak and attention was only put on credit risk control whereas other risks were despised. They still held non-ignorable amount of low quality assets with few lagging tools. Meanwhile, risk management culture was in absence within all commercial banks. Afterwards, the global financial crisis attacked the Chinese economy, giving Chinese banks a more complex financial environment with significantly higher risks than before. In response, Chinese commercial banks decided to follow the Basel Accord to reform and enhance their risk management system comprehensively and thoroughly. Their plan is to complete the Basel ll and lll implementation in following years, and simultaneously realize the Enterprise-wide Risk Management. On the other hand, since Chinese banking system has many remained inherent problems, the comprehensive application of Basel Accord might be questioned. Meanwhile, China still lacks a well-established and efficiently performed economic and political foundation to ensure the effectiveness of Basel Accord. 2011-09-20 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/25067/1/Dissertation_WANG_Yiqiao_4114876.pdf WANG, Yiqiao (2011) Chinese Commercial Banks and the Global Financial Crisis: What was their Risk Management before the Crisis? How do they Change afterwards? [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle WANG, Yiqiao
Chinese Commercial Banks and the Global Financial Crisis: What was their Risk Management before the Crisis? How do they Change afterwards?
title Chinese Commercial Banks and the Global Financial Crisis: What was their Risk Management before the Crisis? How do they Change afterwards?
title_full Chinese Commercial Banks and the Global Financial Crisis: What was their Risk Management before the Crisis? How do they Change afterwards?
title_fullStr Chinese Commercial Banks and the Global Financial Crisis: What was their Risk Management before the Crisis? How do they Change afterwards?
title_full_unstemmed Chinese Commercial Banks and the Global Financial Crisis: What was their Risk Management before the Crisis? How do they Change afterwards?
title_short Chinese Commercial Banks and the Global Financial Crisis: What was their Risk Management before the Crisis? How do they Change afterwards?
title_sort chinese commercial banks and the global financial crisis: what was their risk management before the crisis? how do they change afterwards?
url https://eprints.nottingham.ac.uk/25067/