Bank G Of Macao Operational Risk And Risk Capital Measurement Analysis

The New Basel Capital Accord,presented by the Basel Banking Supervision Committee,Bank of International Settlement in June 2004,which begins to implement in 2007,has officially included operational risk as a capital adequacy rate item.As the calculation of operational risk will bring immense influence on capital adequacy towards the banks,the purpose of this study is to understand the impact have on the banks in Macao had they apply the newly presented New Basel Capital Accord.."This study begins with an introduction of the banking operational risk and then continues with a more in-depth analysis concerning the operational risk of the banking industry in Macao and the operational risk measurements,furthermore,the inspiration that the New Basel Capital Accord brings to the Macao banking industry regarding operational risk management.In addition,this study has also blended some concepts and point of views,which the international banking industry currently adopts,focus on Bank G and according to the regulations of New Basel Capital Accord,it carries out analysis in areas of operational risk capital measurements,the development and process of the operational risk management system,as well as,the challenges that operational risk capital measurement being exposed to,as a reference provided for the banks.