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2022 | OriginalPaper | Chapter

1. Basic Concepts of Bank Risk Aggregation

Authors : Jianping Li, Lu Wei, Xiaoqian Zhu

Published in: Financial Statements-Based Bank Risk Aggregation

Publisher: Springer Singapore

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Abstract

Banks are one of the most important financial institutions in the economic system. The stability of banks is very important for the stability of the whole financial system and the smooth operation of the economy. In the process of operation, banks will inevitably face various types of risks, such as credit risk, market risk and operational risk. Therefore, risk management is necessary to maintain the stability. Regulatory agencies such as the Basel Committee on Banking Supervision have realized the importance of risk management and have formulated the Basel Accord. Bank risk aggregation is the process of calculating the bank's overall risk after considering the correlation between different risks faced by the bank, which is the core issue of bank risk management. Thus, this chapter introduces the Basel Accords and the concepts of variety types of bank risks and bank risk aggregation.

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Title: Basic Concepts of Bank Risk Aggregation
Authors: Jianping Li
Lu Wei
Xiaoqian Zhu
Publisher: Springer Singapore
Book: Financial Statements-Based Bank Risk Aggregation
Print ISBN: 978-981-19-0407-3

Electronic ISBN: 978-981-19-0408-0

Copyright Year: 2022
DOI: https://doi.org/10.1007/978-981-19-0408-0_1