Risk Management And Managerial Efficiency In Chinese Banks: A Network DEA
Source: Cardiff Business School
Risk Management in Chinese banks has traditionally been the Cinderella of its internal functions. Political structure and developmental imperative have often overridden standard practice of risk management resulting in large Non-Performing Loan (NPL) ratios. One of the stated aims of opening up the Chinese banks to foreign strategic investment is the development of risk management functions. In recent years NPL ratios have declined through a mixture of recovery, asset management operation and expanded balance sheets. However, the training and practice of risk managers remain second class compared with foreign banks operating in China.