Abstract

As the impact of COVID-19 on people's daily lives is decreasing, its contribution to risk tol-erance in financial markets, especially banking risk management, will remain and continue to live for a long period of time. Due to the difficult economic climate, banks in particular have higher default rates, which puts the stability of the banking system at risk. The primary fo-cus of this study is on the risk management of banking systems following the outbreak of COVID-19 and identifying Basel III's implications on the function of banking crisis preven-tion. Examining both the interior and exterior banking risk supervision in European and the U.S., it can be seen why the bank insolvency incidents have not affected the global financial systems as the 2008-2009 financial crisis did. This paper demonstrates the different risks of commercial banks and summarizes the problems in risk management of commercial banks through the bankruptcy cases of Silicon Valley Bank and Credit Suisse Bank.

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