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Research Of Operatinoal Risk Management And Its Determinants: An Analysis Of Hua Xia Bank In China

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  • Xie, Zhuang

Abstract

With the development of science and technology and economy, more and more financial intermediaries are appearing in the financial market to ensure more efficient and stable processes in the financial system. As the main part of financial intermediary, the bank plays a vital role in the whole financial market system. In recent years, China's banking industry has been developing rapidly, but there are many potential problems, such as the operational risk management. At the present stage, the operational risk management authority of China's commercial banks is overly centralized, there is no clear loan risk responsibility system, and no effective long-term credit mechanism has been established, and the problem of non-performing loans still exists. This paper takes Hua Xia Bank as the objective of study and its analysis of the data based on its annual report between 2013 to 2017. The result of analysis shows that the ratio of firm-specific factor which can influence operating ratio mostly is leverage. Moreover, for the macroeconomic part, the significant influential factor is GDP. Therefore, this study suggest the bank should manage the leverage ratio effectively and efficiently for preforming well in the operational risk management.

Suggested Citation

  • Xie, Zhuang, 2018. "Research Of Operatinoal Risk Management And Its Determinants: An Analysis Of Hua Xia Bank In China," MPRA Paper 90568, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:90568
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    File URL: https://mpra.ub.uni-muenchen.de/90568/1/MPRA_paper_90568.pdf
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    References listed on IDEAS

    as
    1. Andreas Jobst, 2007. "Operational Risk: The Sting is Still in the Tail But the Poison Dependson the Dose," IMF Working Papers 2007/239, International Monetary Fund.
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    Cited by:

    1. Abdul Latif, Nurul Atikah, 2019. "The Impact of Liquidity Risk on Internal and External Factors," MPRA Paper 97222, University Library of Munich, Germany.

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    More about this item

    Keywords

    operating ratio; leverage; GDP;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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