| Summary: | 碩士 === 輔仁大學 === 金融與國際企業學系金融碩士在職專班 === 105 === According to the literature on the internal control weaknesses of the banking industry, few people have explored its effect on the credit risk of the banking industry. The literature of the banking credit risk is also rarely discussed from the view of the internal control weaknesses. The purpose of this study is to analyze the interrelations and relative importance of the bank credit risk by analyzing the type of punishment by the competent authorities due to internal control weaknesses and their type of operating risk loss. This study explores the effect of internal control weaknesses on bank credit risk by using 114 observations from 38 domestic banks in 2014 to 2016. The empirical results show that the internal control weaknesses of variables for the punishment by competent authorities to lift the case involved in the affairs of the bank credit risk has a significant positive effect. Other internal control weaknesses of variables such as corrections by the competent authorities or corrections within a time limit, being suspended for the business, and the fines by the competent authorities, although the bank credit risk is positively related but not significant. In addition, this study further explores the effect of operating risk loss on bank credit risk. According to the empirical results, it is found that the loss type of the operation risk is positively affected by the customer, the product, the business behavior or the operational disruption and the system crash. Internal fraud and external fraud, or executive, shipping and operational processes, are not significantly related to bank credit risk.
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