Financial Risk Management in Banking: Evidence from Asia Pacific

Banks must manage risk effectively to survive in uncertain financial climates. This book offers a new modeling approach to determine financial risk management by integrating the dollar-offset ratio and Data Envelopment Analysis (DEA). It also examines the efficiency measurement under stochastic DEA approaches and provides strategies for banks to improve their strategic risk management practices and reduce the impacts of external risks.

\n Format: Hardback
\n Length: 276 pages
\n Publication date: 27 August 2019
\n Publisher: Taylor & Francis Ltd
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The banking industry is inherently risky, and banks must implement effective risk management strategies to ensure their survival in uncertain financial climates. Fluctuations in interest rates, which can cause financial imbalances, have a significant impact on banking operations, necessitating the implementation of efficient risk management measures.

In this book, the authors present a novel modeling approach to evaluate banks' financial risk management. The approach integrates the dollar-offset ratio and Data Envelopment Analysis (DEA), focusing on derivatives usage. It further examines the efficiency measurement under stochastic DEA approaches, including Bootstrap DEA (BDEA), Sensitivity Analysis, and Chance-Constrained DEA (CCDEA). Through a modeling exercise, the authors demonstrate the applicability of this integrated approach to other cases requiring risk management efficiency measurement strategies.

Additionally, this book is the first to comprehensively review the derivative markets in both developed and developing countries in the Asia-Pacific region. By examining the differences in risk management efficiency among banking institutions in these countries, the book provides valuable insights into the region's financial landscape.

Based on the measurement approach outlined in the book, banks can enhance their strategic risk management practices and mitigate the impacts of external risks, such as changes in interest rates and exchange rates. Furthermore, the book helps banks stay abreast of recent developments in efficiency studies in management accounting, particularly in relation to hedge accounting, which is widely used by banks in the Asia-Pacific region.

In conclusion, this book is a valuable resource for banks seeking to improve their risk management strategies and stay competitive in the ever-evolving financial landscape. By integrating innovative modeling approaches and providing comprehensive insights into the derivative markets and efficiency studies, the authors offer practical strategies for banks to navigate the challenges of uncertainty and thrive in today's complex financial environment.

\n Weight: 568g\n
Dimension: 162 x 240 x 22 (mm)\n
ISBN-13: 9781138388277\n \n