Journal of Accounting and Management Information Systems (JAMIS)

Ways of analyzing the banking risk

10/2004 ,   p22..32

Hesham Hassan Hosny SALEH

Keywords:   banking risk, types of banking risks, structure of banking risk, risk analysis, banking risk analysis indicators.

Any bank is subject, on the competition market, to the laws of the market. The capital of the bank can be influenced, on one hand by the capital market’s specific factors, and on the other hand by factors of economic nature, that indirectly influence the bank, through economic agents that use the bank’s services. In appreciating the system risk one must take into account the entire typology of banking risks. The evaluation of a bank’s viability must be based on a profound and complex financial analysis that must take into account financial aspects and non-financial activities of the bank. Last but not least, we consider that a multi-criteria approach of the financial risk constitutes “the Gordian knot” of the development of the banking sector in a functional market economy.