Research On Risk Management Of Chinese Commercial Banks From The Perspective Of Corporate Governance

Commercial banks play an important leading role in China's market economy.At the same time are important media for monetary authorities to conduct macro-control.With the improvement of the risk management of financial companies has risen to the level of governing the country,it is particularly important to research and analyze the risk management of commercial banks that dominate our financial system.In recent years,China's banking system has experienced a large number of cases,and incomplete corporate governance has become one of the important reasons for bank risk exposure.To what extent does the problem affect the operational risks of commercial banks,and based on this,it proposes policy suggestions to improve the risk management level of commercial banks from the perspective of improving corporate governance.This article starts with the role of commercial bank corporate governance influencing the size of its business risks.Based on the relevant literature and theoretical basis of research on commercial bank corporate governance,risk management,and the relationship between the two,there is a logic to the quality and risk of corporate governance of commercial banks.The relationship was deduced.Since the interest margin of commercial banks comes from risk-taking,the connotation of broad corporate governance in commercial banks that takes risks as its operating content includes risk management;corporate governance of commercial banks is the premise and basis for risk management implementation,and risk management is An important part of corporate governance of commercial banks.Furthermore,this article summarizes the current status of corporate governance and risk management of different types of banks.China Banking Regulatory Commission's 2016 Annual Report divides China's commercial banks into state-owned large commercial banks,joint-stock commercial banks,urban commercial banks and rural commercial banks.Different types of commercial banks differ in terms of operating regions,regulatory policies,and administrative licenses..All types of banks have formed a “three associations and one layer” corporate governance basic structure and supporting risk governance mechanisms,and have embedded risk management functions into all levels and business processes of bankmanagement,but the risks under corporate governance Management also has problems focusing on the lack of rationality of the equity structure,the lack of independence due to the insufficient degree of marketization of directors' appointments,and the lack of incentives for the compensation system.Starting from the equity structure,the characteristics of the board of directors,and the compensation characteristics,this article proves that the equity structure,the characteristics of the board of directors,and the compensation characteristics of the corporate governance of commercial banks will have a significant impact on the operational risks of commercial banks based on panel data of 37 banks for five years.Among them,the nature of property rights will affect the operating risks of commercial banks,and the non-performing rate of loans of state-owned commercial banks is higher.The corporate governance issues of different types of commercial banks are different from the perspective of risk management.The major risk points of large state-owned banks come from insufficient equity balances and joint-stock commercial banks High salary levels have promoted risk-seeking behavior among managers,and small and medium-sized commercial banks have great opportunities to improve the balance of equity,optimize the size and independence of the board of directors,and increase the incentive level of the compensation system.Based on the research in this article,this article puts forward policy recommendations to reduce the operational risks of commercial banks from the perspective of corporate governance in general and for different types of commercial banks.Among them,the general suggestions for improving corporate governance from the perspective of risk management include building a multi-balanced equity structure with checks and balances,clarifying the rights and responsibilities of different roles in the governance structure,improving the status of risk management strategies in the organization,and formulating incentive-compatible Manager compensation plan.For large state-owned commercial banks,they mainly improve corporate governance by appropriately introducing strategic investors through this round of mixed-ownership reform to enhance the balance of equity.For joint-stock banks,the main recommendations include appropriately reducing the level of salary incentives and restraining internal control issues.Commercial banks mainly improve the quality of corporate governance by clarifying the boundaries of government power and improving the structure of the board of directors.The main innovations of this paper are as follows: First,it reveals the role of corporate governance of commercial banks influencing the size of their operating risks.That is,all the extensions of comprehensive risk management of commercial banks are included in the connotation of broad corporate governance theory.Corporate governance provides the possibility for comprehensive risk management of commercial banks.In corporate governance,the ownership structure,the characteristics of the board of directors,and the design of the compensation system are the main factors that affect the size of the operating risk.The ownership structure affects the overall risk appetite of the risk management strategy,the characteristics of the board of directors affect the effectiveness and independence of risk supervision,and the design of the compensation system affects the effectiveness of the execution of risk strategies.The above three aspects are the effects of corporate governance of commercial banks on the size of their operating risks.Path;Second,it is found in the research that although various types of commercial banks in China have now formed a “three associations and one layer” corporate governance basic framework and supporting risk governance mechanisms,the risk management of our commercial banks under corporate governance also exists Focusing on the lack of rationality of the equity structure,the lack of independence due to the insufficient degree of marketization of directors' appointments,and the lack of incentives for the remuneration system.These are all important factors that lead to risks for commercial banks.At the same time,it is found that the nature of property rights will significantly affect the operational risk of commercial banks,and different types of commercial banks have different corporate governance characteristics that affect the degree of risk.This article combines case analysis to analyze the characteristics of the corporate governance and risk management model of commercial banks under the Anglo-American model and the Japanese-German model.Among the Anglo-American model with the board of directors as the core,Citibank and HSBC both focus on borrowing options.Incentives and other methods to achieve the consistency of the interests of managers and shareholders to reduce agency problems,have a strong reference significance to enhance the incentives of China's salary;while the Japanese-German model Mitsubishi Bank and Deutsche Bank have raised the status of the board of supervisors to strengthen the check and balance of the board The role has a greater guidance for improving the governance level of China's boardof directors.Fourth,this article adopts The research on corporate governance and risk management of commercial banks,the classification and research of different types of commercial banks through the status quo analysis and empirical research methods,found the influencing factors of the risks caused by the corporate governance of different types of commercial banks,and put forward suggestions for improving our commercial It is of certain guiding significance for banks to improve their risk management practices under corporate governance.