A Study on the Connotation and Extension of Bank Resilience: Based on the Perspective of Active Risk Management

Abstract

The purpose of the research on bank resilience is to mobilize the initiative of banks in risk management. The negative impact of the financial crisis was been regarded as an opportunity to improve risk control ability to improve the banking industry’s risk tolerance, self-healing ability and environmental adaptability in the financial market. This paper obtains the theoretical significance of bank resilience through concept definition and necessity analysis. Then, we analyze the form and process of bank resilience from dynamic and static aspects, respectively, makes it clear that how valuable bank resilience is to reform and characteristic development of the banking industry. Based on that, the factors influencing bank resilience analyzed and the risk management system is been reconstructed. Thus, the challenge of financial crisis to banks will transform into the opportunity to enhance bank resilience and realize the high-level balanced development of risks and benefits. The contribution of this paper is to introduce the concept of resilience into the financial field. Through the innovation of risk management mode, financial institutions are encouraged to carry out active risk management, so that banks can realize the diversification of operational risk business and improve the efficiency of risk control.