TITLE:
A Study on the Connotation and Extension of Bank Resilience: Based on the Perspective of Active Risk Management
AUTHORS:
Xin Xu, Lu Lu
KEYWORDS:
Bank Resilience, Risk Management, Protective Factors, Resilience Reconstruction
JOURNAL NAME:
Modern Economy,
Vol.11 No.6,
June
19,
2020
ABSTRACT: The purpose of the research on bank resilience is to
mobilize the initiative of banks in risk management. The negative impact of the
financial crisis was been regarded as an opportunity to improve risk control
ability to improve the banking industry’s risk tolerance, self-healing ability
and environmental adaptability in the financial market. This paper obtains the
theoretical significance of bank resilience through concept definition and
necessity analysis. Then, we analyze the form and process of bank resilience
from dynamic and static aspects, respectively, makes it clear that how valuable
bank resilience is to reform and characteristic development of the banking
industry. Based on that, the factors influencing bank resilience analyzed and
the risk management system is been reconstructed. Thus, the challenge of
financial crisis to banks will transform into
the opportunity to enhance bank resilience and realize the high-level balanced
development of risks and benefits. The contribution of this paper is to introduce
the concept of resilience into the financial field. Through the innovation of
risk management mode, financial institutions are encouraged to carry out active
risk management, so that banks can realize the diversification of operational
risk business and improve the efficiency of risk control.