Analyze the Efficiency of Banking Risk Management in Banks Operating in The Local Environment Through the Application of Basel Standards in Financial Risk Management

Abstract

This article discusses the challenges facing the banking system in light of the development of the banking industry and the increase in banking competition at the local and global levels. The article notes that banking risks are no longer limited to credit risks, but also include market risks, liquidity, interest rates, operational risks and others. Based on this development, it has become necessary for banking regulators and institutions to apply unified standards for managing these risks in order to protect the financial stability of banks and the financial system. The article highlights the role of the Basel Committee on Banking Supervision in setting these standards and motivating banks to implement them to ensure the safety of banking systems. The article also notes the importance of bank risk management to enhance the sustainability of banks and avoid the negative effects of risks. The research aims to review the concepts of banking risks and their importance, identify strategies to deal with them, and the extent to which banks comply with the requirements of the Basel Committee. The research shows hypotheses such as the importance of properly managing banking risks for the success of banks and achieving their goals, and the difficulty of applying Basel requirements in the banking environment. The study is chronologically limited to the period from 2014 to 2018, and spatially limited to analyzing the reports of the Rafidain bank in Iraq during that period.