Precautions And Dissolution Of The State-owned Commercial Banks Risk

The prevention and elimination of banking risks is one of the permanent topic of the banking business. This article shall from the angle of economics analyze the reasons of banking risks firstly. Then, on such basis, this article shall study the market risks and system risks arising from commercial banks according to their property structure, bank scale, merger action, service innovation, system reforming and so on. Finally, this article shall propose some countermeasures to prevent and eliminate banking risks. This article is divided into 10 chapters, simply described as follows:Chapter I is an introduction, which will briefly introduce the definitions and characteristics of banking risks and will indicates that the banking risks have the several below ?mentioned characteristics. 1. Any banking risk has the objectivity. At any time when a bank conducts a banking service, some banking risks therein exist objectively. 2. Any banking risk has the controllability. Although banking risks exist objectively, they are controllable. 3. Any banking risk is of diffusibility. 4. A banking risk is of invisibility. The invisibility makes it more difficult for prevention. 5. The banking risk has an acceleration property. Once a banking risk happens, depositors will accelerate their drawing activities. When one or several banks occur banking risks, depositors will draw their deposits from the banks, which will lead the whole banking system to crisis.Chapter Il is the economic analysis on risks of commercial banks. This chapter analyzes how a banking risk to form according the below six aspects. 1. Inherent vulnerability of banking system and risks of commercial banks. 2. Information asymmetry, moral crisis and inversional selection and risks of commercial banks. 3. risoner difficult position?and panic bank withdrawal and banking risks. 4. Commission ?agent theory and banking risks. 5. heory of financial cycle?and banking risks. 6. Infectivity of financial risks and bankingrisks.Chapter lli is fOr Property Right Structure of Stat6 -- owned CommerciaI Banksand Banking Risks. This chapter wiII mainIy condUct djscussjons as per the fol-towing three aspects. l. SimpIe property right structure Of state -- owned com-mercial banks and banking risks. For a Iong time, state -- owned commercialbanks are of simpIe property rjght structure' AIthough commerciaI banks havebeen reformed and possess a certain degree of independent operation rights,th6 state is aIways their sole owner, there stiII exists a "recessive protection"relation between the st8t6 and banks, and the banking risks are highfy concen-trated on the government. 2. Defects of commission -- agent system and bank-ing risks. Between the state -- own general commercial bank and the govern-ment and between the state -- owned generaI commerciaI bank and various sub-sidjary banks, there exist several leveIs of commission -- agent relation. ln themulti -- IeveI commission -- agent relation, the restriction for the commission a-gents is declined level by leveI, which forms the "degression Of owner's re-striction" and finally increases the operation risks Of the commercial banks' 3.PoIynary property right & joint stock banks and bank risk aversion. As for anystate -- owned bank, the banking risks are borne fuIIy by the state. We thinkthat state -- owned commerciaI banks' issuing Of Iisted stocks is th6 best optionfor financial risk elimination in China. When going on list, a state -- owned bankcan raise Iarge amount Of resident savings and can permanentIy suppIement thecapital fund. Therefore, when an industriaI state -- owned enterprises issuetheir Iisted stocks, some stocks of a financiaI state -- owned bank can be issuedat same time. Only by doing this, can a bank obtain a sufficient capital fund.Compared with going on Iist for industriaI capitaI, going on list for financial cap-itaI is more edective to improve the asset quality of a bank and more beneficiaIfor the state to adjust the industry stru...