Banking Risk Assessment under COVID-19 Pandemic

Abstract

Since the banking industry is a crucial component of the financial markets, how to manage it is an important issue, especially the aspect of risk management, in which, some commercial banks perform poorly. This research uses the definition and some cases introduce what is the meaning of liquidity risk, credit risk, market risk, and systemic risk. Then this paper takes some big-name banks such as SVB, and Credit Suisse as examples and researches their management ways when facing risk to prove the necessity of risk management and why banks should deal with the risk. Additionally, the author cites Basel III to emphasize the importance of the capital adequacy ratio which can obtain the capital markets stable. This research draw a conclusion that how the banking industry should manage the risk and what measure should they take when facing corresponding risk, only by managing the risk reasonably, the banking industry can maximize risk reduction and increase the revenue to obtain operation. With this, in the future without covid-19, the banking industry can be more stable.