Year: 2016 | Month: November | Volume: 3 | Issue: 11 | Pages: 5-15
The Largest Risks Facing the International Banking System
Caesar K. Simpson
Swiss Management Center University
This paper considers significant risks being faced by the international banking system. Those risks can be clustered into four categories relating to (1) funding and liquidity, (2) regulatory changes (3) cyber security and other geopolitical risks, and (4) the general economic picture. While each of them is considered to be manageable, together they represent a clear and present danger to the international banking system. Therefore, to confront these risks, it is suggested to provide a more systemic solution rather than a separate one. There is a call for a global financial supervision and regulations to deal with these risks. Although the present economic environment looks quite favourable, these risks make it even more important that the international banking system build on the substantial progress already made in strengthening risk management and the resilience of critical market infrastructure. These risks are analysed and recommendations are provided as to how the international banking system might manage them.
Key words: International Banking, Risk, Risk Management.[PDF Full Text]