The Analysis Of The Legal Countermeasures Of The Operational Risks Of China's Commercial Banks From "Bank Of China, Beijing Br./anch's Huge Mortgage Scam"

Banks are the most prominent creative institutions of liquidity in financial market, whose importance in the field of financial system is beyond argument. However, in providing liquidity, the bank is also assumed to undertake corresponding risks. Operational risk which, in New Capital Accord, has been defined as the third greatest risk after the credit risk and market risk by Basel Committee on Banking Supervision.This paper takes a case of "Bank of China, Beijing Br./anch's Huge Mortgage of 0.645 Billion yuan Scam" as an example, trying to analyze, from the angle of management and law, the main causes of high operational risks, and it also proposes the countermeasures to control and lower the high operational risks of China's commercial banks in the market economy environment.This paper first presents a deep description of a case of typical bank operational risk of Senhao Apartments Mortgage Scam, which is due to internal staff's serious dereliction and external personnel's fraud, and analyzes in details of the motives, the design, the realization and the punishment of the cheating loan activities. And then it probes the operational risk refracted from this case, analyzing the factors relieved in the operational risk of our country's commercial banks and proposing several legal risks which would be faced to commercial banks in virtue of the comparative weakness of the current financial legislation of our country. Finally, it, from actual conditions, puts forward its own views and suggestions on preventing operational risks of commercial banks from the angle of perfecting state law and regulations, strengthening institution building and blowing illegal behavior by making full use of legal weapon.