Risk Management and Capital Measurement in Commercial Banks

Capital adequacy requirements are the rules that help bank supervisors determine whether banks hold sufficient capital at all times to meet unexpected losses. The banking industry had moved ahead with its risk assessment technique, economic capital models and risk based pricing. The turmoil in banking industry has provided an opportunity to examine the robustness of risk assessment techniques and economic capital models.This book provides a good understanding of the reasons behind bank failures, risk assessment techniques, economic capital models and risk based pricing that reduce the risk of future failures. The importance of risk management of commercial banks in terms of capital measurement has been emphasized throughout.The prime objective of the book is the measurement of capital of the unexpected loss for risk management of the commercial banks in order to prevent insolvency. It provides technique to quantify capital for holding on economic basis.

Autorentext

Dr. Asit Mohanty is Associate Professor in Finance in Xavier Institute of Management, Bhubaneswar(XIMB). He holds PhD in Banking Risk Management.He is a Certified Banker and Risk Manger from Indian Institute of Banking and Finance. He has 12 years of experience in Banking Industry in Risk management Division.