Introduction

Martin Hibbeln ()
Additional contact information
Martin Hibbeln: Technische Universität Braunschweig

Chapter Chapter 1 in Risk Management in Credit Portfolios, 2010, pp 1-4 from Springer

Abstract: Abstract “Risk concentrations are arguably the single most important cause of major problems in banks” (Basel Committee on Banking Supervision (BCBS) (2005) International Convergence of Capital Measurement and Capital Standards – A Revised Framework, Updated November 2005, Bank for International Settlements). On the one hand, dealing with concentration risk is important for the survival of individual banks; therefore, banks should be interested in a proper management of risk concentrations on their own. On the other hand, the Basel Committee on Banking Supervision (BCBS) has found that nine out of the thirteen analyzed banking crises were affected by risk concentrations, which shows that this issue is important for the stability of the whole banking system. Consequently, risk concentrations are also crucial from a regulatory perspective and should therefore be considered when establishing regulatory capital standards. However, the existing literature on concentration risk in credit portfolios is rather scarce. Against this background, several economical and regulatory aspects of concentration risk are analyzed in this work.

Keywords: Basel Committee On Banking Supervision (BCBS); Concentration Risk; Credit Portfolio; Capital Standards; Asymptotic Single Risk Factor (ASRF) (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-7908-2607-4_1

Ordering information: This item can be ordered from
http://www.springer.com/9783790826074

DOI: 10.1007/978-3-7908-2607-4_1

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().