China's Bank Risk And Its Prevention

With the globalization of economy and finance, China's entry into WTO, the national banks will be confronted with the unexpected development opportunity and competitive challenges. Meanwhile, the financial and insurance Industries open gradually, therefore the bank risk will be increased. The increasing bank risk will lead to financial hazard. The financial hazard not only damage the steady development of the national banking, but also bring bad influence on the national economy and the regime's alternation. Furthermore, the financial hazard the development of the area economy and the global economy. The Southeast Asia financial crisis happened in 1997 illustrated it sufficiently. Therefore preventing bank risk is an economic problem and great political problem.The article beginning with the concept of the banking risk, puts foreword the types and causes of the banking risk, and the means, method and steps to solve the problem together with two cases analyses. In this paper, the author uses the quantitative and qualitative ways to solve the problems, which will be beneficial to the banking.