A co-relational analysis of commercial bank's operational indicators towards capital adequacy ratio
Initially under the Basel I, operational risk wasn't included in its minimum capital requirement framework. Consider the importance of the inclusion of operational risk in the framework, thus Basel II was released as an improvement to its predecessor. With the changes in the banking regulation where commercial bank?s Capital Adequacy Ratio (CAR) is not allowed to drop below the level of 8%, the result may vary. Though originally Basel II intended to strengthen the soundness in banking industry, in the contrary, the inclusion of operational risk in the framework present challenge to most of banks. Hence, it is this research objective to explicate the correlation degree of each commercial bank?s operational indicators selected in this thesis towards CAR. The result is expected to shown which operational indicators appears to be the most critical to control CAR at the desired level.
B00953 | (wh) | Available |
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