The Risk And Prevention Of Intermediate Business In China's Commercial Banks

As our country has joined WTO, the commercial banks of China are facing the keen competition from foreign banks. The intermediate business has been the focus that is fought for fiercely. At the same time, however, it is for a long time that the commercial banks of China have been devoted to assets and liabilities business. Intermediate business is a 'bottleneck' of the development of Chinese commercial banks. So the development of intermediate business is essential to commercial banks.Anyway the development of intermediate business is not the one without cost, the intermediate business are risky. It has credit risk, market risk, operation risk, liquidity risk and legal risk just as assets and liabilities business but its risk are not the same in nature as the other two.Facing the situation commercial banks in our country should learn from those in western countries, they should control and regulate risks in the point of view of internal and external of commercial banks.This thesis is aiming at the shortage of the present study on this problem, study the problems of risk aversion and prevention with it's development; evaluate the market risk, the credit risk, investment risk etc.. The main method we used in this thesis to evaluate the risk of Intermediate Business is VaR (Value at Risk). At last, study to take some measures which will match the real state of our country to prevent the risk of Intermediate Business.Above all, commercial banks of China should control risks of intermediate business at the same time of development of it. And only by this method intennediate business is able to go ahead in a healthy and stable way, which will do some good to Intennediate Business in China's commercial bank.