دانلود رایگان مقاله انگلیسی ثبات مالی بانک و مدیریت ریسک - امرالد 2017

Abstract

Purpose: The paper examines the effect of Saudi bank’s financial stability on risk management. Design/methodology/approach: Different OLS models have been used to study the significant effect of banks’ financial stability indicatorson different types of risks in Saudi Banks.Financial statements have been collected for all Saudi banks (12 banks) from 2011 to 2014 from TADAWL website. Findings: Our results indicate a negative and significant effect of capital adequacy ratio on credit risk. Also, there is a significant and positive effect of leverage ratio on credit risk. Moreover, our results indicate negative and significant effect of provisions, leverage, ratio of loans to deposits and bank size on liquidity risk. Finally, results indicate a positive and significant effect of capital adequacy, provisions, leverage and asset utilization ratio on operational risk and indicate a negative and significant effect of LTD ratio on operational risk. A robustness check used to confirm our results. I find no differences between small and large Saudi banks. All banks are committed to apply Basel accord and SAMA regulations. But I find a significant difference in applying SAMA toolkits regulations between 2011 and 2014. In 2014, I find very strong results reflecting a very high degree of financial stability in Saudi banks compared to 2011 and more ability to mitigate risk exposure using different types of macroprudential toolkits stated by SAMA. Research Limitations/implications: the study is limited to Saudi Banks from 2011 to 2014. Originality/value:The paper is the first paper to use the macro-prudential toolkits, suggested by Saudi Arabian Monetary Agency (SAMA) as financial stability measurements, to examine their effect on different types of risks in Saudi banks. SAMA suggested this group of toolkits to comply with Basel III new regulations and to minimize the degree of risk exposure of Saudi banks.

5. Conclusion and future research

A group of macroprudential toolkits have been applied by SAMA as a response to Basel accord. These group of toolkits used as a risk management hedging mechanisms. I examine the effect of the macroprudential tools on risk management in Saudi banks. Our results indicate a negative and significant effect of capital adequacy ratio on credit risk. Also, there is a significant and positive effect of leverage ratio on credit risk. Moreover, our results indicate negative and significant effect of provisions, leverage, ratio of loans to deposits and bank size on liquidity risk. Finally, results indicate a positive and significant effect of capital adequacy, provisions, leverage and asset utilization ratio on operational risk and indicate a negative and significant effect of LTD ratio on operational risk.

A robustness check used to confirm our results. I find no differences between small and large Saudi banks. All banks are committed to apply Basel accord and SAMA regulations. But I find a significant difference in applying SAMA toolkits regulations between 2011 and 2014. In 2014, I find very strong results reflecting a very high degree of financial stability in Saudi banks compared to 2011 and more ability to mitigate risk exposure using different types of macroprudential toolkits stated by SAMA.

SAMA and Saudi banks’ boards must support macroprudential toolkits suggested as they reflect strong risk management tools. Other Gulf countries, which follow SAMA regulations, must follow the same tools to mitigate their banks’ risk exposure. An international comparative study could be done to examine the same effect of hedging tools on risk management in banking sector.