Title: New framework as risk-vulnerability index in commercial banking system

Authors: Dayanand Pandey; Surender Kumar

Addresses: Jaipuria Institute of Management, A-32A, Sector 62, Noida 201309, U.P., India ' Jaipuria Institute of Management, A-32A, Sector 62, Noida 201309, U.P., India

Abstract: Risk management in commercial banking has been facing great challenges due to dynamic changes occurring both within and outside the system. This study focuses on the adoption of new frameworks to explain the measurement of risk in the commercial banking system. The study introduces new parameters of vulnerability in combination with external risk to gauge the potential threat of a commercial bank. The study presents a theoretical framework to construct a risk-vulnerability index (RVI), in the context of commercial banking operations. For this purpose, the existing parameters of risk (as per Basel III), financial stability indicators of commercial banks, and expert opinions are taken into consideration. It may help stakeholders detect potential threats more precisely and enable banks to take corrective measures in time to avert the threat.

Keywords: risk; vulnerability; framework; commercial banks; potential threat; Basel III; risk-vulnerability index; RVI.

DOI: 10.1504/IJEBR.2024.138883

International Journal of Economics and Business Research, 2024 Vol.27 No.4, pp.568 - 587

Received: 01 Jul 2021
Accepted: 06 Oct 2021
Published online: 03 Jun 2024 *

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