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...

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Main Authors:	Alireza Tamadonnejad, Aisyah Abdul-Rahman, Mariani Abdul-Majid, Mansor Jusoh
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:	http://journalarticle.ukm.my/7569/ http://journalarticle.ukm.my/7569/ http://journalarticle.ukm.my/7569/1/7120-18220-1-SM.pdf

id	ukm-7569
recordtype	eprints
spelling	ukm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
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.
format	Article
author	Alireza Tamadonnejad, Aisyah Abdul-Rahman, Mariani Abdul-Majid, Mansor Jusoh,
spellingShingle	Alireza Tamadonnejad, Aisyah Abdul-Rahman, Mariani Abdul-Majid, Mansor Jusoh, Bank risk exposures in the East Asian Region
author_facet	Alireza Tamadonnejad, Aisyah Abdul-Rahman, Mariani Abdul-Majid, Mansor Jusoh,
author_sort	Alireza Tamadonnejad,
title	Bank risk exposures in the East Asian Region
title_short	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_sort	bank risk exposures in the east asian region
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2014
url	http://journalarticle.ukm.my/7569/ http://journalarticle.ukm.my/7569/ http://journalarticle.ukm.my/7569/1/7120-18220-1-SM.pdf
first_indexed	2023-09-18T19:50:03Z
last_indexed	2023-09-18T19:50:03Z
_version_	1777406158610366464

Bank risk exposures in the East Asian Region

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