Bank Performance Measures Navigating Ai Climate And Geopolitical Risks

The reforms introduced in the aftermath of the Global Financial Crisis of 2007–2009 have had the desired effect in that banks are better capitalised banks have higher liquidity buffers and the share of non-performing loans is low. Macroprudential policies have been implemented banking sector supervision has been overhauled and the new resolution framework gives hope that bank failures will not escalate systemic risk. This book argues however that we still need to remain vigilant. The world has not yet recovered from the pandemic and we are now faced with new challenges particularly climate technological and geopolitical risks affecting international trade the availability and prices of energy carriers and the cost of capital. In this context it asks what measures should be used to assess a commercial bank whether as a potential shareholder client member of the bank’s bodies or a supervisory institution. It provides a broad overview of bank performance measures used in contemporary investment management and supervisory practice in the most important areas of a bank’s activity as well as metrics that synthetically reflect the bank’s standing. The book evaluates a commercial bank in the context of the climate crisis and risk the growing importance of Fin Tech cybersecurity and AI technology as well as the challenges related to the escalation of geopolitical risk. It also includes an assessment of the standing of global systemically important banks (G-Si Bs) and banking sectors in Europe indicating potential directions for changes to the tools used so far. It will find a broad audience among students academics and researchers in finance and banking as well as policymakers and regulators. Chapter 4 of this book is freely available as a downloadable Open Access PDF at http://www.taylorfrancis.com under a Creative Commons Attribution-Non Commercial-No Derivatives (CC BY-NC-ND) 4.0 license. |Bank Performance Measures Navigating AI Climate and Geopolitical Risks