Financial Security and Risks of Commercial Banks
Mon, 04 Jul 2016 15:46:00 BST
The Emerging Markets Research Group heard Murozhdon Nazarov, a visiting doctoral researcher from Tajikistan, speak about his research on banking risk and the financial security of commercial banks.
Murozhdon said: "Commercial banks, due to the nature of their activities, are subject to all sorts of risks arising from the financial markets and, as a result, are subject to supervision and regulation by the state in most countries. Banking activity is exposed to a broad range of risks. The study, analysis and assessment of banking risks is necessary if the development of practical measures aimed at ensuring the security of banks as a whole is to be successful. The speed of change and the scale of the losses, which some banks have suffered since 2007, have increased so much that some models of analysis and decision making, which worked successfully in earlier days, have become ineffective. The crisis in the financial markets, which are becoming more frequent, and recent cases of losses suffered by investment banks, give a lesson that transactions in the financial market, particularly in relation to derivatives, require the development of risk management systems to a level which are adequate to deal with the perceived risks".
Professor John Anchor, Director of the Emerging Markets Research Group, says : "the identification and analysis of financial and other risks is an increasingly important aspect of life in the in the financial services sector. For many banks, risks are becoming both larger and more complex. Very often, they incorporate both political and financial elements. Therefore Murozhdon’s study is both timely and important".
