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- Title
Risk Measurement of Indian Banks: A CSRISK Analysis.
- Authors
Tiwari, Satish Chandra; Keasarwani, Sandeep Kumar; Azam, Sikandar
- Abstract
This paper proposes another proportion of foundational chance, namely, Capital Shortfall Risk (CSRISK), which recognizes a budgetary organization's capital shortage under the most noticeably terrible situation restrictive on a significant market decay. The CSRISK list requires just open monetary information, including bookkeeping and market exchanging data, which is time and practice. The sample includes 251 Indian banks for the period of 20 years, starting from January 1, 1998 to December 31, 2018. The period is divided into three phases: pre-crisis (1998-2007), crisis (2008) and post-crisis (2009-2018)--data on returns collected from Yahoo Finance. The market value of equity and book value of debt are extracted from the Prowess database. Variable k is 9% (Basel norms II), which is the regulatory requirement by the Indian banks to maintain assets as a part of total assets. This fundamental hazard measure can be generally applied in the field of executives and macroprudential strategy making. The paper focuses on CSRISK using regression analysis approach. The study found that the larger the CSRISK, the greater the bank size; this could help risk managers to control the course of action. Banking regulators may evaluate the market capital shortfall proficiently and efficiently with the help of CSRISK in case of a troubled economic scenario.
- Subjects
CAPITAL shortages; CAPITAL market; RISK management of financial institutions; BOOK value; BANK assets; FINANCE
- Publication
IUP Journal of Accounting Research & Audit Practices, 2021, Vol 20, Issue 4, p58
- ISSN
0972-690X
- Publication type
Article