Basel II in the Practice of Chinese Banks

Author: Zhou Wei, Yang Bingbing
Publisher:
Publish Date: 2006-07-01
Features: After Hong Kong had just weathered the Asian Financial Crisis, the authors were sent by the Bank of China headquarters to Hong Kong to engage in risk management work. To meet the needs of bank management reform, they began preparing to launch a credit risk management reform project. This project was one of the earliest in the industry in Hong Kong at the time, featuring characteristics of the implementation of the Basel New Capital Agreement. The project was officially launched in 2001 with the goal of: referring to the spirit of the Basel New Capital Agreement, combining the bank's operating environment and actual conditions, establishing an internal rating system, loss prediction, risk pricing, portfolio management, and capital management models, and implementing them in a comprehensive risk management system. This was intended to drive reforms in credit business processes, organizational structure, and policies and procedures, ultimately achieving maximized risk-adjusted shareholder returns. This book compiles and summarizes research articles formed during the implementation of this project. The book is divided into two parts: one is the theoretical section, mainly discussing the Basel New Capital Agreement; the other is the practical section, mainly consisting of project presentations made by the authors during the credit risk management reform project. These articles are beneficial for both beginners in risk management and practitioners in the field.