OPERATIONAL RISK AND FDI IN THE BANKING SECTOR
In general, the academin literature has paid its attention to market risk and credit risk and ignored operational risk, an "umbrella" term that includes problems with information systems, operational problems, breaches in internal control, fraud, or unforeseen catastrophes such as 9-11 or SARS. The negative impact of operational risk on banks net profit, lead to the conclusion that operational risk is to be considered one of the key drivers for furure profits. Analysing information provided by financial institutions and empirical experience, the paper concludes that not only there is a strong connection between the FDI and operational risk but the link between the two has a double sense of "incentive-effect", one is influenced by the other and vice-versa.
Year of publication: |
2010
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Authors: | D, Roxana Hetes Ph. ; Candidate, oana Miru Ph. D ; PhD, Assist. Oana Lobont ; PhD, Assist. Cristina Nicolescu |
Published in: |
Annals of University of Craiova - Economic Sciences Series. - Facultatea de Economie şi Administrarea Afacerilor, ISSN 1223-365X. - Vol. 2.2010, 38, p. 6-6
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Publisher: |
Facultatea de Economie şi Administrarea Afacerilor |
Subject: | operational risk | foreign direct investments | banking sector |
Saved in:
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