i want to do my PhD work in corporate governance area and by selecting commercial banks from KSE-100 Index. i needs your suggestions and guidance please.
Dear Muhammad Ayub Khan
Greetings,
Please , find the attached file about your topic
Best Regards
One deals with the DUALITY in context of incentives and risk management in bank context. One has to be careful that incentive system will motivate but at the same time put the banks on high risk because there may be a lot of misspelling. Incentives in financial organizations is a double edge sword and therefore research hypothesis have to be formulated carefully. The melt down of 2008 in US context was primarily result of huge incentive system.
I just want to add that commercial banks do not have any risk in Europe, China and the US. So they don't need a risk management. The government pays all losses by printing tax money. Maybe this is different in Pakistan?
Alexander Dill thanks for your valuable information.i will confirm it know.because I was not aware about this information before your reply.thanks again
Dear Muhammad,
I think what Alexander means is rather a political commitment, but not a legal obligation to bail out banks, at least to my knowledge with regard to Germany and the English speaking countries. The recent dispute between the Deutsche Bank and the US Department of Justice may serve as an example - the German government clearly stated that it is not going to support the bank in paying its penalty to the US which accounts for the bank's total market capitalisation of 14bnUSD (at the moment, it seems that the bank is going to settle with the US by paying half of that amount, but again without the help of the German government).
Paul