Empirical Study on the Most Suitable Commercial Banks´ Operational Risk Measurement Approach of China

Author

Chen, Xiangdong ; Li, Junwei

Author_Institution

Sch. of Econ. & Manage., Beihang Univ., Beijing

fYear

2008

fDate

12-14 Oct. 2008

Firstpage

1

Lastpage

4

Abstract

This paper researches on some main commercial banks´ operational risk measurement approaches such as Basic Indicator Approach, the standardized Approach and Income Model and so on in detail. Based on the definition of the three measurement approaches, the writer adopt the latest data of two listed corporations - Pudong Development Bank and China Mincing Banking Corporation for Empirical Analysis of targets. The empirical study result is Income Approach is the best model of them to measure operational risk, and it has realistic significance, Thus Income Approach has been the most suitable statistics model for China´s commercial banks to manage operational risk today.

Keywords

banking; risk management; China; basic indicator approach; commercial banks; income model; operational risk measurement; standardized approach; Accidents; Aggregates; Banking; Business; Charge measurement; Current measurement; Economic indicators; Loss measurement; Risk analysis; Risk management;

fLanguage

English

Publisher

ieee

Conference_Titel

Wireless Communications, Networking and Mobile Computing, 2008. WiCOM '08. 4th International Conference on

Conference_Location

Dalian

Print_ISBN

978-1-4244-2107-7

Electronic_ISBN

978-1-4244-2108-4

Type

conf

DOI

10.1109/WiCom.2008.2413

Filename

4680602