0000000000498062
AUTHOR
Irina Solovjova
New Approaches to Regulating the Activities of Rating Agencies: A Comparative Analysis
Abstract Rating agencies have become an important part of the global financial landscape. Formation of credit ratings is specified by the inherent asymmetry of financial market information and general interest in the transformation of a large amount of diverse and segmented financial information in a simple and clear assessment of the credit surveillance of borrowers that is credit rating. The world financial crisis started in 2008 has again put on the agenda the question of rating assessment accuracy and the factors influencing the rating migration. The activity of rating agencies, until recently, has had little regulation, allowing rating agencies to avoid responsibility for inaccuracies …
Komercbanku sistēmas stabilitātes problēmas
Elektroniskā versija nesatur pielikumus
Some Quantitative Aspects of Stability Management Strategy in a Bank
Abstract The stability of commercial bank system is the result of balanced development, which can be characterised by equilibrium and security over a longer period of time. The history of commercial bank system development indicates that reaching and sustaining this qualitative and quantitative state requires regulations and management. One of the most important parts of commercial bank management system is correctly chosen strategy in the circumstances of a changing environment. Strategy gives a possibility to look into the future of the commercial bank, forecast its goals, areas, scale and potential operational results in relation to resource sources and expenses. Nowadays a commercial ba…
Assessment of bank financial health in Latvia
Financially strong, trustworthy and reliable banks form the basis of every economy and are a vital precondition for the stable economic development of every country. The financial health of banks is important for different stakeholders, including bank clients, correspondent banks, state and others. Therefore, lack of appropriate measures for bank financial health can cause a number of risks for the bank stakeholders. Traditionally the assessment of bank financial health and reliability is done by the international rating agencies as Standard & Poor’s, Moody’s and Fitch. These ratings are widely recognized worldwide; however, due to different reasons ratings assigned by the international rat…
New Tendencies of Management and Control of Operational Risk in Financial Institutions
Abstract Nowadays, financial institutions highly recognize a great influence of effective risk management on profit abilities. Therefore risk management became an important part of the financial instrument. According to the latest researches, there still remain problems related to the management of various types of risks. For instance, the Basel Committee of the Bank of International Settlements imposes financial institutions for more intensive devoting their attention to operational risk management problems. Due to the increased intensity of performed financial operations, financial institutions became very vulnerable to operational risks. In many cases, the high level of operational risks…
Bank Reliability Assessment Model: Case of Latvia
Reliable and stable banks are an important precondition for the sustainable development of national economy. The objective of the chapter is to design a model allowing assessment of bank reliability in the context of bank financial strength. The model is designed using publicly available financial statement data of Latvian commercial banks, in the period of 2003–2016, macroeconomic data as well as aggregate statistical data of Latvian banking sector. The model allows calculation of ratings reflecting reliability level of banks. The model is designed based on the multiple choice model ordered logit. The chapter identifies the most important factors reflecting reliability level of banks, incl…