The Research Of Legal Regulation On Risk Concentration Of China's Commercial Banks

With the increasing complexity of modern social activities, everyone and all kinds of organizations face a variety of risks every day. Finance is the core of modern economy. As the most important part of finance, commercial banks have to face more risks. It is determined by the character of commercial banks that they earn their profits on the basis of risks. It is very important for commercial banks to control risk, which will help them survive from stiff competition. Since its foundation, the main risk of commercial banks is credit risk. For the banks, the major task of risk management is to control large exposure.Modern banking in China started late. Due to historical reasons, China's banking industry does not develop smoothly, and the market-oriented banking progresses slowly. For China's major commercial banks, as the shareholding reform has just completed, the legal regulation is not perfect concerning how to control risk concentration of commercial banks. Legal regulation of risks concentration is stipulated briefly. In financial practice, commercial banks operate more in accordance with the China Banking Regulatory Commission's regulations and regulatory documents. In this regard, after developing for more than 100 years, suffering from several crises, Europe and the United States have accumulated a lot of experiences on how to control the large exposure effectively to withstand market risks. Therefore, China should learn from Western countries, on the basis of our specific situation and financial practices, focus on the shortage of our current laws, and further improve the legal regulation on risk concentration of China's commercial banks by supplementing related concepts and regulations and carrying out corresponding systems and measures.