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Operational Risk And Fdi In The Banking Sector

Author

Listed:
  • Roxana Hetes Ph. D

    (West University of Timisoara Faculty of Economics and Business Administration Timisoara, Romania)

  • oana Miru Ph. D Candidate

    (West University of Timisoara Faculty of Economics and Business Administration Timisoara, Romania)

  • Assist. Oana Lobont PhD

    (West University of Timisoara Faculty of Economics and Business Administration Timisoara, Romania)

  • Assist. Cristina Nicolescu PhD

    (West University of Timisoara Faculty of Economics and Business Administration Timisoara, Romania)

Abstract

In general, the academin literature has paid its attention to market risk and credit risk and ignored operational risk, an "umbrella" term that includes problems with information systems, operational problems, breaches in internal control, fraud, or unforeseen catastrophes such as 9-11 or SARS. The negative impact of operational risk on banks net profit, lead to the conclusion that operational risk is to be considered one of the key drivers for furure profits. Analysing information provided by financial institutions and empirical experience, the paper concludes that not only there is a strong connection between the FDI and operational risk but the link between the two has a double sense of "incentive-effect", one is influenced by the other and vice-versa.

Suggested Citation

  • Roxana Hetes Ph. D & oana Miru Ph. D Candidate & Assist. Oana Lobont PhD & Assist. Cristina Nicolescu PhD, 2010. "Operational Risk And Fdi In The Banking Sector," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(38), pages 1-6, May.
    • Handle: RePEc:aio:aucsse:v:2:y:2010:i:6:p:276-281
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    More about this item

    Keywords

    operational risk; foreign direct investments; banking sector;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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