Bank risk exposures in the East Asian Region
Risk management is a pivotal factor for managing financial institutions. Efficient and sustainable banking activity requires managers to take all sources of instability into account and to adopt strategies against risks. The objective of the present paper is to investigate the sources of bank risk...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2014
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| Online Access: | http://journalarticle.ukm.my/7569/1/7120-18220-1-SM.pdf |
| _version_ | 1796930575908470784 |
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| author | Alireza Tamadonnejad, Aisyah Abdul-Rahman, Mariani Abdul-Majid, Mansor Jusoh, |
| author_facet | Alireza Tamadonnejad, Aisyah Abdul-Rahman, Mariani Abdul-Majid, Mansor Jusoh, |
| author_sort | Alireza Tamadonnejad, |
| collection | UKM |
| description | Risk management is a pivotal factor for managing financial institutions. Efficient and sustainable banking activity requires
managers to take all sources of instability into account and to adopt strategies against risks. The objective of the present
paper is to investigate the sources of bank risks with a straightforward and comprehensive risk measurement for the
East Asian region. The Z-risk index and a three-factor Capital Asset Pricing Model (CAPM) are adopted to estimate the
probability of insolvency, systematic bank risks and unsystematic bank risks. The results demonstrate that banks in East
Asian countries are exposed to a variety of risk exposures. Also, the findings show that banks with lower unsystematic
risks do not necessarily have lower insolvency risks, indicating that the sources of insolvency risk are complicated and
need further research. Finally, a regional cooperation strategy among banks is suggested so that exchange rate and
interest rate risks can be reduced. |
| first_indexed | 2024-03-06T04:05:06Z |
| format | Article |
| id | ukm.eprints-7569 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:05:06Z |
| publishDate | 2014 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-75692016-12-14T06:44:30Z http://journalarticle.ukm.my/7569/ Bank risk exposures in the East Asian Region Alireza Tamadonnejad, Aisyah Abdul-Rahman, Mariani Abdul-Majid, Mansor Jusoh, Risk management is a pivotal factor for managing financial institutions. Efficient and sustainable banking activity requires managers to take all sources of instability into account and to adopt strategies against risks. The objective of the present paper is to investigate the sources of bank risks with a straightforward and comprehensive risk measurement for the East Asian region. The Z-risk index and a three-factor Capital Asset Pricing Model (CAPM) are adopted to estimate the probability of insolvency, systematic bank risks and unsystematic bank risks. The results demonstrate that banks in East Asian countries are exposed to a variety of risk exposures. Also, the findings show that banks with lower unsystematic risks do not necessarily have lower insolvency risks, indicating that the sources of insolvency risk are complicated and need further research. Finally, a regional cooperation strategy among banks is suggested so that exchange rate and interest rate risks can be reduced. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7569/1/7120-18220-1-SM.pdf Alireza Tamadonnejad, and Aisyah Abdul-Rahman, and Mariani Abdul-Majid, and Mansor Jusoh, (2014) Bank risk exposures in the East Asian Region. Jurnal Pengurusan, 40 . pp. 83-89. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index |
| spellingShingle | Alireza Tamadonnejad, Aisyah Abdul-Rahman, Mariani Abdul-Majid, Mansor Jusoh, Bank risk exposures in the East Asian Region |
| title | Bank risk exposures in the East Asian Region |
| title_full | Bank risk exposures in the East Asian Region |
| title_fullStr | Bank risk exposures in the East Asian Region |
| title_full_unstemmed | Bank risk exposures in the East Asian Region |
| title_short | Bank risk exposures in the East Asian Region |
| title_sort | bank risk exposures in the east asian region |
| url | http://journalarticle.ukm.my/7569/1/7120-18220-1-SM.pdf |
| work_keys_str_mv | AT alirezatamadonnejad bankriskexposuresintheeastasianregion AT aisyahabdulrahman bankriskexposuresintheeastasianregion AT marianiabdulmajid bankriskexposuresintheeastasianregion AT mansorjusoh bankriskexposuresintheeastasianregion |