Specifically, financial institutions will need to employ the advanced risk management techniques that have been rapidly developed in recent years so as to appropriately manage the various risks involved in each new business area, for example, credit risks, market risks, and operational risks, and thereby achieve sound business management and enhance profitability.
Competition among financial institutions to provide various financial services and develop advanced risk management techniques will not only strengthen financial institutions' ability to provide valueadded services but also enhance the functioning of financial markets, thus leading to increased financial system stability. Enhancing the functioning of financial markets is also very important for firms.