OPERATIONAL RISK MEASUREMENT OF NEW BASEL II ACCORD FOR S-BANK

• Main Authors: Su-Yueh Lee, 李素月
• Other Authors: 丘駿飛
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/65802286558836560834

碩士 === 元智大學 === 管理研究所 === 95 === Compared to other countries, the scale of our financial institutions is smaller and, among the banks, the competition is keener as well as lack of the niche for international competition due to the highly similar business nature and activities. In order to construct a financial environment and legal system with international connection, mergers and acquisitions have become the necessary trend to increase the competitive capability for local banks toward the international and Asian regional banks. Coupled with the scheduled implementation of The New Basel Capital Accord at the year-end of 2006, the risks of the banking industry monitored via capital adequacy has expanded to three pillars of capital adequacy, supervisory and market discipline. To look ahead, the risk management will become more difficult and complicated. While this is a big challenge to the financial industry in Taiwan, it is also the turning point to raise the nation’s competitiveness and international connection. In the midst of non-stop mergers and acquisitions among the domestic financial institutions, to comply with Basel II and to develop a system for operation risk management suiting the bank itself has become more difficult. The stronger the bank’s operation risk management capability is, more competitive it becomes. Therefore significant investment must be in place for the system infrastructure, the data management and collection for loss experience, and the cultivation of human capital as well as talent training. With these establishments, those financial institutions compliant to Basel II standard can earn better international rating that helps raise the competitiveness. Under the Basel II guidelines and structure, this research probes the area of data building and measurement of the loss experience related to the operational risk. This study will focus on S Bank’s execution in actual practice and the problems occurred during the execution.