| Finance is the core of the economy and plays a vital role in the operation of the economy.At present,the financial market reform has entered the deep water zone,and the banking system has also entered a stage of substantial change.The government attaches great importance to the bottom line of financial risks.The model of copying Western commercial bank theories is no longer suitable for the development of commercial banks at this time.We should study the theories of commercial bank risk management,deepen the research and innovation of commercial bank management theories with Chinese characteristics,and improve the risk management of commercial banks in China.It is necessary to take the essence and remove the dross from the history of risk management development.It is extremely important for safeguarding the country’s financial security,and maintaining the stability of the the currency system by improving the risk control level of China’s commercial banks.Since the establishment of the China Commercial Bank(1897),Chinese modern commercial banks had tried to establish internal and external risk management systems.Some excellent commercial banks experienced great progress in risk management until the beginning of Sino-Japanese War in 1937.On the one hand,the external supervision led by the government and bank guild had got a great process from simple to complex,from ineffective to a little coercive.With the trend of free development of commercial banks to officialization,the whole External supervision was gradually established and improved,but still not satisfied.On the other hand,in terms of internal management of commercial banks,some excellent commercial banks refined their own risk management,continuously improved internal control with institutionalized rules and regulations,strengthened management of capitalization,credit risk,operational risk to keep security.This paper mainly researches on the risk management of modern commercial banks,takes the internal and external risk management of commercial banks as the entry point,and focuses on government supervision,internal management,and bank associations,and then explores the characteristics of bank risk management.The specific content is divided into seven chapters.The chapter one is the introduction,which is mainly about the background,research significance and research purpose.This chapter sorts out the literature,and introduces the research methods and research ideas of this article,and then puts forward the innovation and shortcomings of this article,and defines the theoretical basis and related concepts of this article in the last.The second chapter mainly introduces the changes of the background of the risk mangement of banks.Since the Opium War,Great changes had taken place in China’s economy and social structures,the development of modern industry and commerce had created favorable conditions for the emergence and development of banks.The development of modern industry and commerce had created better conditions for the emergence and growth of commercial banks.During the development of the new-type Chinese-funded banks,they encountered internal and external troubles,warlords fighting,constant agitation,and squeeze by foreign banks.The development process had gone through a lot of twists and turns.Since the establishment of the China Commercial Bank in 1897,Chinese-owned commercial banks had survived in the cracks.Chinese banks had experienced high failure rates.Commercial banks had experienced the coexistence of major developments and major bankruptcies.New commercial banks had sprung up and coexist with a large number of bank failures in the same time.Some outstanding Chinese-funded commercial banks had grown in the cracks and gradually become the core of China’s financial system.The third chapter mainly explores the the government supervision and management of modern Chinese commercial banks.Although the regulatory system of Chinese modern commercial banks had gone through a process,its regulatory effects were relatively limited.Regarding regulatory agencies,from the Duzhibu of the Late Qing Dynasty to the Ministry of Finance of the Beiyang Government,to the Financial Supervision Bureau and the Central Bank of the Nanjing National Government,the professionalization and refinement of supervision had undergone considerable progress,but the risk prevention and control objectives were affected by the government,the effect of supervision was poor.Regarding regulatory laws,the overall legal system had gradually improved,but due to its weak coercive force,the regulatory effect was not good.During the period of the Nanjing National Government,due to the Officialization of Commercial Banks,the government’s control over banks was strengthened,and the government gradually gained the leading power in bank supervision,but its regulatory goal was to issue currency and meet financial needs,which deviated from the original intention of supervision.Although the overall effect of government supervision was limited,it was still undeniable that it had played a certain role in financial stability and laid the foundation for subsequent development.The fourth chapter is the core part of the whole paper on the internal risk management of modern commercial banks.It mainly includes four parts: internal control management,capital management,internal asset risk management,and liquidity risk management.The internal control management of modern commercial banks is mainly included two aspects,one is to carry out organizational setup and institutionalized management to enhance internal control;the other is to strengthen the establishment of personnel access mechanisms to prevent operational risks and moral hazards.In terms of capital management,at the beginning of the establishment of modern Chinese-owned commercial banks,their capital was obviously less,and there were obvious problems such as insufficient paid-in,more government-run business than commercial business,and false capital increase.However,in general,the capital of Chinese-funded commercial banks experienced a relatively rapid growth,showing the strengthening of its ability to resist risks.In terms of risk management of internal asset operations,modern excellent commercial bank risk management was mainly included credit risk management and market risk management.Credit risk management was mainly included two aspects.One was to strengthen the access investigation of credit loan customers,relied on internal customer identification and external China credit bureaus to conduct risk research and judgment,and regularly track credit conditions to prevent risks.Secondly,in terms of risk compensation,increased the proportion of mortgage loans,payed more attention to collateral management,and prevented loans and collaterals from hanging in the air,affecting the safety of funds.In terms of market risk,it was mainly managed by means of institutionalized management and decentralized investment to reduce corresponding risks.In terms of liquidity risk management,it mainly evaluated the level of liquidity management of commercial banks at that time through the loan-to-deposit ratio index,and explored the two liquidity rescues at that time,namely,the joint reserve of the bank association and the central bank’s lender of last resort,which played an important role in the liquidity risk management of commercial banks at that time.The fifth chapter is about the Bank Guild.Due to the unsatisfactory regulatory system of Chinese commercial banks in modern times,in addition to strengthening their own risk management construction,commercial banks had especially strengthened the construction of industry associations to deal with internal and external risks.With the establishment and gradual strength of the Banking Association,it played an important role in supervision and management under the early weak government supervision system in modern China,and even led the supervision of the entire banking industry from the outside,and promoted the progress of government supervision.As an independent third-party organization,the Bank Guild had played a significant role in the mutual capital assistance,emergency rescue,and establishment of commercial banks.In 1927,Nanjing national government was established,due to the officialization of banks,the government’s supervision of bank continued to strengthen.The entire supervisory system was gradually incorporated into the government’s leadership,and the supervisory role of industry associations gradually weakened.In modern times,China’s banking supervision had shown a tortuous development process from point to surface,from the shallower to the deeper,and industry associations had played a vital role.The sixth chapter analyzes the risk management characteristics of modern Chinese commercial banks from the macro level.Modern commercial bank risk management was mainly included government supervision,internal management and industry self-discipline.It mainly optimized the budget constraint line or indifference curve,thereby increasing the level of welfare and achieving Pareto improvement.In terms of path selection,it was basically based on induced changes.The path of change was comprehensive and developed on the basis of adapting to the national conditions of modern China at that time.It was theoretically scientific and unique in the times.In terms of its risk indicators,it also coincided with the above viewpoint.Its micro-level indicators performed relatively well,while the macro-level indicators were relatively mediocre.The seventh chapter summarizes the paper,and explores the risk management of modern Chinese commercial banks,and obtains the following suggestions:First,micro-management should pay more attention to internal control in order to improve the operating level of commercial banks.The internal control of commercial banks is an important barrier for risk prevention.In modern China,although commercial banks had established a basic management system,which had made great progress compared with the previous traditional bank notes,the level of refinement was still insufficient.Throughout modern Chinese commercial banks,the well-developed 28-bank’s institutionalized management,including job responsibility system management,business operation system management,credit lending system management,and personnel system management,got extremely great progress,but the formulation of new business systems is relatively slow.Nowadays,the financial market is changing rapidly.As a commercial bank with high operating leverage,it should continue to strengthen internal control,reduce the rule of people,and promote the rule of law,which can not only reduce operational risks,but also reduce moral hazards.Secondly,macro management should be more refined,with greater emphasis on subject responsibility and coercive force.On the one hand,the construction of external supervision should make the subject responsibility and jurisdiction scope more clear.In modern China,the main financial industry supervision had switched from single-head supervision into the dual-head supervision by the Financial Supervision Bureau and the Central Bank.The overall progress was remarkable.However,the independence of modern supervisory entities is relatively insufficient,and there was lack of objective,fair and comprehensive management of the financial industry supervision at that time.At the moment,our country should clarify the supervisory bodies and responsibilities of Regulatory Authority,unify and coordinate cross-cutting issues in various fields,so as to perform their duties,integrate organically,and coordinate management.We should strengthen the main functional positioning of the Financial Stability and Development Committee of the State Council,coordinate the relationship between the "one bank and two committees",especially when encountering emergencies and major problems,a unified decision can be made to avoid conflicts between the interests of the departments and avoid the think about problems from their own perspectives.On the other hand,the construction of the system should be more detailed,and the mandatory and binding force of management and control should be continuously strengthened.In modern China,although the "Banking Rules","Banking Law" and other laws gave the supervisory authority the right to supervise and manage,most of them were still recommendations and guiding management rather than mandatory requirements.They were lack of authority and coercion.Without compulsory binding force,the effect of supervision is poor,and regulatory requirements were difficult to implement.Micro-risk prevention and macro-adjustment structure would no longer exist.This had led to the failure of modern supervision,frequent agitation,and high bank failures.At this time,in the stage of China’s strong government,strong supervision,and legalization,the financial Regulatory Authority "one committee,one bank,two commissions" has fully constructed a multi-level and highly efficient regulatory system.From the legal level,it is particularly important to give the "one committee,one bank,two commissions" national compulsory supervision.The third point is to maintain the independence of industry self-regulatory organizations.In modern China,the industry self-regulatory organization(the bank guide)played a important role in joint external voices,industry mutual assistance,industry self-regulation,injected new vitality and breath into the weak commercial bank supervision at that time,and had played an immeasurable role to the development of commercial banks at that time.The China Bank Guide acts as an industry self-regulatory organization,but its supervisor is the direct supervisory authority of the banking industry — China Banking and Insurance Regulatory Commission,which leads to poor independence and high overlap with supervisory departments.Then it usually unable to truly exert self-discipline management from the grassroots to the grassroots.The industry self-regulatory organization should be independent of the regulated third-party industry associations.This will help the organization to be closer to business practices and communicate with commercial banks more smoothly,so as to better and earlier discover problems and jointly respond.The innovations of the paper mainly include the following three points.The first one is about the innovation of research methods.In the study of modern Chinese Banking History,institutional economics methods,especially the theory of institutional change was often been used,but risk management theory as the research foundation was relatively rare in the study of modern Chinese Banking History.It is also a brand-new method to explore the characteristics of modern bank risk management evolution with welfare economics.Therefore,using new theories to study the history of banking,and the innovation of research methods will provide a new perspective for the article.The second one is innovation in the research field.So far,there are few research results on risk management of modern Chinese commercial banks.To study separately from a more in-depth perspective,in order to make a positive contribution to the research in the field of modern commercial banking history in China,and play a role in early research in this direction,this paper clearly takes the risk management of modern Chinese commercial banks as the theme,systematically combs and studies it,and attempts to expand the modern Chinese banking history from a historical macro perspective and historical facts to internal management and risk management perspectives.The third one is the innovation of research perspective.This paper conducts a comprehensive and multi-level research on modern commercial banks from the perspective of risk management,and evaluates its effects.From the research perspective,current research rarely involves related fields;from the research results,none of the known research results have conducted comprehensive and multi-level risk management research on modern banks.Therefore,exploring modern banks from a new research perspective is an important innovation of this paper. |
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