Building Bank Resilience Through Risk Management Competency Development

Eric H. Y. Koh

Chapter 8 in Banking Resilience and Global Financial Stability, 2024, pp 211-225 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter studies the use of a proposed integrated competency development approach to address the challenges which a bank’s risk management function faced during the COVID-19 pandemic. It studies the challenges and regulatory reforms after the 2008 Global Financial Crisis. It argues that these reforms were not sufficient to address the challenges in the longer term. It revisits the key features of the proposed integrated approach to risk management competency development. Next, it studies and identifies four major challenges together with the corresponding risk management competency development requirements. It finds that these requirements can be inferred from the proposed integrated approach. It proposes that this integrated approach is, and will likely remain, relevant to helping banks build resilience as they confront future pandemics and challenges.

Keywords: Bank capital; Capital Buffers; Financial Stability; Macroprudential Regulation; Systemic Risks; Accounting Standards; Bank Stability; Financial Reporting; Local GAAP; IAS/IFRS; Lending Risk; Bank Capitalization; Bank Risk-Taking; Credit Risk; Asian Banks; Stability; Financial Development; Banking System; Growth; Regression; Human Resources; Trade: Population; Emerging Economies; Human Capital; Financial Stability; Intellectual Capital Efficiency; Human Capital Efficiency; Structural Capital Efficiency; Relational Capital Efficiency; Resources Based Theory; System Generalize Method of Moments; Competitive Environment; Islamic Banks; Asian Countries; Banking; Regulatory Capital; Bank Performance; Basel Accord; Profitability; Risk; Minimal Capital Requirements; Political Instability; Bank Supervision; 2SLS; Financial Institutions; Bank Holding Companies; Great Recession: FDIC; Financial Markets; Financial Crises; Economic Recessions; Heterogeneity; Systemic Risk; Dodd Frank; Foreign Exchange; Systemic Risk; Turkish Banking Sector; Volatility; Foreign Loans; Domestic Loans; Total Assets; Total Credits; Total Deposits; Interest Rates; Financial Crisis; Risk Management; Competency Development; Banks; Integrated; Resilience; Uncertainty; Pandemic; Risk; Actionable; Financial Stability; Systemic Risk; Crisis Management; Bank Recovery and Resolution; Capital Requirements; Climate Physical Risk; Climate Transition Risk; Digital Finance; Safety Net; Twin Transition; Market Illiquidity; Monetary Policy; Bank Lending Channel; Banks; Shocks; Loan Supply; OECD Countries; Financial Crisis; Interest Rates; Transmission Mechanism; European Monetary Union; European Central Bank; ECB Governing Council; Expansionary Monetary Policy; Trilemma; TARGET2-Balance; Inflation; Transmission Protection Instrument (TPI); ECB Anti-Fragmentation Instrument; Pandemic Emergency Purchase Program (PEPP); Credit-to-GDP Gap; Out-of-Sample Forecasts; Augmented Credit Gap; Countercyclical Capital Buffer; Credit Gap; Decision-making Process; Basel Gap; Forecasting Gaps; One-Sided Gap Series; Two-Sided Gap Series; Altman; Z-Score; Economic Distress; Kazakhstan; Banks; Emerging Market; Multiple Discriminant Analysis; Financial Health; Prediction Accuracy; Wilks' Approach; Direct Approach; Microfinance; Microfinance Institutions; Global Financial Crisis; Covid-19; Social Outreach; Financial Sustainability; Operational Self-Sufficiency; NGOs; Capital Structure; Legal Status; Liquidity Hoarding; Economic Policy Uncertainty; Qatari Banks; Islamic Banks; Endogeneity; Instrumental Variable Approach; Economic Blockade; Asset-Side Liquidity Hoarding; Liability-Side Liquidity Hoarding; Gulf Cooperation Council (search for similar items in EconPapers)
JEL-codes: G2 G21 G24 G28 (search for similar items in EconPapers)
Date: 2024
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