A Study of Factors Affecting Banking Operating Risk
- 10.2991/aebmr.k.201211.068How to use a DOI?
- Operating risk, Z-score, factors
With reforms like interest rate marketization, and during banks’ expanding of non-interest income business, size, and lending, it’s of vital importance to manage banking operating risk to make their development steadily. Based on the micro-data of 12 listed Banks in China from 2011 to 2019 and the macro-economic data of the same period, this paper studies the correlation between seven variables of related factors and the banking operating risk which is represented by Z-score. Through using an established empirical model, it’s finally found that the operating risk decreases with the increase of capital adequacy ratio, growth rate of GDP per person, size of bank, the proportion of non-interest income and net interest margin, while the operating risk increases with the increase of money supply and loan-to-deposit ratio. The results of this paper can provide a reference for the supervision and management of risks.
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Junyi Li PY - 2020 DA - 2020/12/14 TI - A Study of Factors Affecting Banking Operating Risk BT - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020) PB - Atlantis Press SP - 401 EP - 404 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.201211.068 DO - 10.2991/aebmr.k.201211.068 ID - Li2020 ER -