Bank Risk Regulation and the Credit Crunch
15 Pages Posted: 3 Oct 2008
Date Written: June 17, 2008
This paper aims at analysing the direct and indirect causes of the American lead sub-prime credit crisis. The first part of the paper looks at the way the banking system has reacted to this crisis in its critical areas. Then, upon the findings of the first part, the second part studies the effects of the credit crunch in the area of risk management in the Western banking system. Eventually the paper's conclusions regard several key areas for risk management improvement by endorsing a tighter regulatory and supervising risk control mechanism while foreseeing the next move in these banks' financial strategy.
Keywords: Basel II implementation, risk management, banking industry, bank strategy
JEL Classification: F34, G15, G21, G24
Suggested Citation: Suggested Citation