Crisis 2008 Turned Out to be a Game Changer for Banks and Financial Institutions

摘要

The very survival of financial institutions and banks depends on various factors. While financial institutions have faced difficulties in over the years for a multitude of reasons, the major cause of serious banking problems continues to be directly related to credit defaults by borrower. For most banks, loans are the largest and most obvious source of credit risk. Credit risk continues to be the leading source of problems in banks world-wide, banks and their supervisors should be able to draw useful lessons from past experiences. Discussing about the crisis 2008, Risk got new dimension in banking and financial institution. More stringent acts and policies were framed. To control risk is the main concern. Arvind and Jason are both discussing about current policies in their own countries banking system. Expected Credit Loss and Mark to market concept need more focus on controlling the risk. The discussion showed the major reasons for increasing risk. This also recommends about the strengthening of regulatory frameworks to identify risk.