Phenomenon of the Bank's Reputational Risk

Shulga, Natalia; Balanchuk, D.

doi:10.32702/2306-6806.2019.6.21

Cited by 1 publication

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“…If we turn to international standards, the Basel Committee on Banking Supervision distinguishes the following bank risks: credit risk, country risk and transfer risk, market risk, interest rate risk, risk of liquidity loss, operational risk, legal risk and reputational risk. The Basel Committee on Banking Supervision defines a bank reputation risk as the risk arising from a negative perception by customers, counterparties, shareholders, investors and regulators, which may affect the bank's ability to maintain existing or establish new business relationships and obtain longterm access to funding sources [5,9].…”

Section: фінансово-кредитніmentioning

confidence: 99%

“…Next, we will analyze the factors that affect the formation of the of bank reputation risk at the macro and micro levels (Fig. 2) [1,5].…”

Section: фінансово-кредитніmentioning

confidence: 99%

“…Source: summarized by the author based on [1,5] Table 2 shows the stages of reputation risk management and the characteristics of these stages.…”

Section: Fig 2 Factors Affecting the Formation Of Bank Reputation Riskmentioning

confidence: 99%

“…N. P. Shulga and D. V. Balanchuk consider "reputational risk as the probability of the occurrence of risky events that threaten the bank's reputation and lead to negative potential consequences, namely: the sanctions of regulatory and supervisory bodies; the court decisions on reimbursement of funds to clients and counterparties; the inability to retain existing customer base and attract new customers, as well as many others, which, in turn, makes it impossible for the bank to have constant access to sources of financing at an acceptable price, or results in losses, or a lack of income, or a loss of capital" [5].…”

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Theoretical and Methodological Principles of Reputation Risk Management in Banks

Torianyk

Shevchenko

Torianyk

et al. 2023

FCS

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The success of banking institution directly depends not only on the quality of provided services, but also on the reputation of bank on the market. This issue is especially acute for the bank, since its effectiveness largely depends on the behavior and degree of trust in it by customers, creditors, the state, counterparties and partners. Therefore, for the banking business, the threat of reputation loss has taken one of the first places in the list of the most significant risks. The article substantiates the theoretical and methodological principles for improving the management system of reputational risk in banking. The object of the research is the process of managing the reputational risk in banks, and the subject of the research is theoretical and methodical approaches to the management of reputational risk in banks. The study of scientific works of foreign and domestic scientists and the regulatory framework made it possible to generalize the main approaches to the interpretation of the concept of "reputational risk". It has been found that most of the authors of the considered methodical approaches concerning reputation and risk in banks do not distinguish between the concepts of "business reputation" and "reputational risk". Reputation risk is associated with the loss of business reputation, trust and loyalty to the bank on the part of customers and partners, i.e. concerns the management of relations with interested persons. It has been proven that reputation risk can arise as a result of other types of banking risks, or the appearance of such factors as information asymmetry. It has been established that the main measures to minimize the risk of loss of business reputation (reputational risk) in banks are: the implementation of an appropriate information policy, which would involve the publication of information about the bank on the bank's official website and in the mass media, aimed at maintaining the positive reputation of the bank and its image; the participation in thematic conferences, meetings and current interaction with participants of the financial market, settlement of disputed issues by clients and partners of the bank in working order.

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Section: фінансово-кредитніmentioning

confidence: 99%

“…Next, we will analyze the factors that affect the formation of the of bank reputation risk at the macro and micro levels (Fig. 2) [1,5].…”

Section: фінансово-кредитніmentioning

confidence: 99%

“…Source: summarized by the author based on [1,5] Table 2 shows the stages of reputation risk management and the characteristics of these stages.…”

Section: Fig 2 Factors Affecting the Formation Of Bank Reputation Riskmentioning

confidence: 99%

mentioning

confidence: 99%

See 2 more Smart Citations

Theoretical and Methodological Principles of Reputation Risk Management in Banks

Torianyk

Shevchenko

Torianyk

et al. 2023

FCS

View full text Add to dashboard Cite

show abstract

Phenomenon of the Bank's Reputational Risk

Cited by 1 publication

References 0 publications

Theoretical and Methodological Principles of Reputation Risk Management in Banks

Theoretical and Methodological Principles of Reputation Risk Management in Banks

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