Risk Management Perspective of International Banking Services in UK: A Conceptual Paradigm of Risk Taking Bankers

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TABLE OF CONTENTS

INTRODUCTION1

PROBLEM STATEMENT2

RESEARCH AIMS AND OBJECTS2

RESEARCH QUESTIONS2

LITERATURE REVIEW3

International Banking Trends3

Supervising International Banks in the United Kingdom6

Impact of International Banking Services7

Risk Management for Banks Engaged in Cross-border Outsourcing8

METHODOLOGY11

Research Methodology11

Research Strategy12

Target Respondents and Sampling14

REFERENCES16

Introduction

As risk taking is an important part of the international banking services, this is not surprising that risk-taking banks have been practicing management of risk ever since they have been internationalised. The risk-taking bankers could not have survived without adopting the risk management practice. The only actual change is the level of sophistication now needed to reflect the more fast-paced and complex environment.

An important complement to discipline of market in promoting the sound management of risk is the effective supervision of banks. To be effectual, even though, the supervisors of banks should have the ability to assess the condition of banks, particularly the condition of loan range, and they should have the authority to need proper monitoring of the international banking services. After ensuring that the international banking services are in-line, the risk management officers should have the ability to manage the risks. Without this type of monitoring, and the willingness to use risk management strategies, a risk-taking bankers have a policy of patience. In the last few years, the nature of international banking relationships has been changed as a result of innovation in banking techniques and risk management strategies. From the perspective of the recent studies, the most noticeable strategic development has been the much more complete bank dealings and other private sector units in the economies of emerging markets.

The transformation has been reflected in the revision of the idea of country risk used by the risk managers of banks. In the past years, the risk analysis of country was greatly concerned with the risk of transferring; the willingness or ability of a sovereign government to credit its cross-border foreign currency debt. These requirements represented the main form of foreign currency exposures of international banks, to countries of emerging market. The concept of risk provided a logical framework. The studies shows that the analysis of country risk needs to be completed to incorporate the proper risk management practice for international banking services in UK.

Problem Statement

The financial crisis has highlighted a large number of gaps in the knowledge needed to assess and manage the risks related with the international banking services in UK. Research Aims and Objects

The main aim of this research is to assess whether the international banks have adequate information to analyse the risks that are associated with their disclosure to emerging market countries, and how the international banks integrate these assessments into the framework of risk management and decisions of lending. The research will help in answering the use of knowledge that is needed to examine the country risks. The research aims to provide insights regarding how banks with reserved individual. The research objective is to find the insights regarding the effectiveness of risk management framework by risk taking ...