Assessing the Effectiveness of Risk Management Strategies in Enhancing Stress Resilience: A Study of China’s Big Four Banks

Chengyang Zhao ()
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Chengyang Zhao: Shanghai Jiao Tong University, Antai College of Economics and Management

A chapter in Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024), 2025, pp 271-284 from Springer

Abstract: Abstract This research explores the influence of risk management strategies on the resilience of China’s Big Four banks: Industrial and Commercial Bank of China, China Construction Bank, Bank of China, and Agricultural Bank of China. Using financial data from 2018 to 2023, the study employs descriptive statistics and multiple regression analysis to assess the effectiveness of various risk management measures during periods of economic stress, particularly focusing on the pre-pandemic, pandemic, and post-pandemic phases. The findings indicate that the strategies implemented by these banks, such as managing the leverage ratio and risk-weighted asset ratio, significantly affect their capital adequacy and stability in stock price volatility. The results demonstrate that these measures had a considerable impact on the banks’ ability to withstand stress during the COVID-19 crisis. This paper not only contributes empirical evidence to the theory of bank risk management but also provides recommendations for policymakers and regulators to enhance risk management frameworks, ensuring greater resilience in the face of future economic shocks.

Keywords: Risk Management; Compressive Strength; Regression Analysis; Banking Industry (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-652-9_28

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DOI: 10.2991/978-94-6463-652-9_28

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