Banks oppose banks

Author: Zhang Haining
Publisher:
Publish Date: 2004-07-01
Features: This book analyzes the impact of real interest rates on bank assets under a unified control system for deposit and loan interest rates, conducts empirical measurements of default probability and loss rates, and particularly examines the formation mechanism of "internal friction bad assets" related to the relationship between bank headquarters and branches. These are all original research, full of novelty and value. The risk management principles of the Basel New Capital Accord have a profound impact on the management philosophy, models, and mechanisms of banking operations. This book starts by dissecting the logical structure and working mechanisms of the new capital accord, introducing the latest developments in internal rating systems for commercial banks. It analyzes the decisive influence of interest rates and spreads on credit risk conditions. Using samples composed of real data, it empirically measures the relationship between credit risk and regional economic conditions in China's large commercial banks, as well as the covenant of credit default loss rates by industry and cause. It also examines the conflicts between bank headquarters and branches in China, analyzing the root causes, forms, and internal mechanisms of headquarters-branch conflicts that affect asset quality. Based on empirical data, it measures the speed at which bank employees create bad assets and compares the asset quality and capital adequacy of Chinese and international banking sectors. This book is suitable for bank risk managers and other financial professionals, bank investors, regulators, as well as faculty and students of finance and economics majors in higher education institutions.