Since the second great depression much concern has been raised about resilience from onslaught of financial crises and specifically prudential surveillance especially after realizing monetary policies worldwide did not reach the objective of financial stability ensuring resilience from financial crises.
At the forefront of this issue, the core idea is about risk management either liquidity, credit or volatility risk for the sake of ensuring resilience from the risk of outburst of financial crises through attenuation of the object of contagion and propagation rather than affecting their process roughly.
The Basel frameworks in their second third and fourth versions have been adopted successively for the sake of ensuring credit sector resilience from the onslaught of financial meltdowns.Much criticism has covered the proposed instruments hitherto.Critics concern effectiveness purview validity for early warning and so on.Much concern has been raised about the effectiveness of prudential restrictions and how far they reveal sufficient to ensure adequate resilience from the onslaught of financial meltdowns.The critics have also covered the inadequacy of specifying financial vulnerability to be tributary specifically to the credit sector and proposed stock market prudential surveillance as the stock market sector contributes to financial instability.In this respect, several instruments have been engineered for the sake of safeguarding stock market resilience from excess volatility of share prices that are claimed to result in financial instability.
The scope of this special issue is to show how far do the issues of risk structuring and assessment, the issues of early warning and hedging can prevail as being of prominent importance for the sake of providing improved surveillance.
Besides the issue of integration of financial sectors involves tremendously hedging and the derivatives markets along with banking system credit worthiness and the information asymmetries in a field where in formativeness is key.
Going deeper through the risk propagation effect through financial sectors of hedging shows that financial stability root causes are claimed to be interdependent across sectors either complementary or substitutable.
The primary goal of this special issue is to investigate the new trends of research in the nexus between Risk management and prudential surveillance. We invite contributions that explore Risk management, with particular interest in prudential surveillance.
For a dynamic reinvigoration of prudential surveillance the concept of time series forecasting is key in terms of dynamic of prudential surveillance.
This concept brings about the early warning and cross financial sector interaction aspects where dynamic character is considered in horizontal across sectors and vertical through time where time varying aspects herald the dynamic aspect of prudential instruments supposed to upgrade the currently adopted Basel toolkit.
Alongside resilience form financial instability, the issue of contagion stands at the forefront and requires a clear specification of Convergence between performance indicators of financial sectors assessed through gravity indicator and risk features cross correlation.
Through this special issue, we aim to provide new contributions enriching the field of risk management under the framework of prudential surveillance. We welcome researchers from various disciplines to provide interdisciplinary perspectives on Risk management and prudential surveillance. Your contributions will play a crucial role in advancing knowledge in this field
Potential topics include, but are not limited to:
- Assessment of project risk through profitability gap and distribution of overall risk.
- The issues of skew, kurtosis and variance and their relevance for risk supervision.
- Early warning approaches and their contributive value for the scope of future resilience from financial instability..
- Financial accelerator super-multiplier and prudential supervision as a rationale for justifying the impact of prudential surveillance on economic performance.
- Convergence between performance indicators of financial sectors assessed through gravity indicator and risk features cross correlation.
- Hedging in the stock market and prudential surveillance.
- Borrowers' credit worthiness information asymmetries and the impact of the integration of financial sectors on financial stability.
- Stock market prudential surveillance and its prominent value for comprehensive financial instability mitigation.
- Algorithmic trading in the stock market speculation and the nexus between financial stability and efficiency.