Comparative study of banking sector crisis management frameworks and preparedness levels

Posted: Jun 10, 2020

• Prof. Ethan Rossi
• Prof. Harper Schmidt
• Prof. Isaac Li

Abstract

This comprehensive research examines the crisis management frameworks and preparedness levels across diverse banking sectors globally, employing a novel multi-methodological approach that combines quantitative resilience metrics with qualitative governance assessments. The study analyzes thirty-two major banking institutions across eight distinct regulatory jurisdictions, developing a unique Crisis Preparedness Index (CPI) that incorporates both traditional financial stability indicators and innovative behavioral governance factors. Our methodology introduces a cross-domain analytical framework adapted from clinical AI systems, drawing inspiration from transfer learning approaches used to overcome data limitations in healthcare applications. The research reveals significant disparities in crisis preparedness that cannot be explained by conventional financial metrics alone, with institutional culture and adaptive governance structures emerging as critical determinants of resilience. Findings demonstrate that banks with more decentralized decision-making frameworks and proactive scenario-planning capabilities exhibited substantially higher preparedness scores, regardless of their size or geographic location. The study contributes original insights by challenging the predominant focus on capital adequacy as the primary crisis mitigation strategy and proposes a more holistic framework that integrates organizational behavior, technological adaptability, and regulatory foresight. This research provides banking regulators and financial institutions with an evidence-based toolkit for enhancing systemic resilience through improved crisis management protocols and preparedness assessment methodologies.