The Stratigyto Deal With The Risks Of China's Banking System Under The Opening-market Environment

Bank risks, which not only threaten the development of economy and the stability of economic order of a nation, but also directly influence the development of international economy and the stability of a region of international politics, especially in today's fast-developing and integrated international economic system, is a vital question for all the market economy oriented counties all over the world to study urgently. Ours is a developing country with the market economy system preliminarily established. Influenced by conventional system, the imperfections, the instability and lack of adaptation brought by the transition of economic system determines that there will be serious bank risks in the process of economic development. The possibility of occurrence and serious consequences of bank risk has been aroused our vigilance. Chinese government had taken a series of measures over the past several years: Legislation for the banking in 1994, strengthening financial scrupulous supervision after 1996, supplementing capital of 270 billion Yuan for four major state-owned banks in 1998, establishing assets Management Company and stripping non-performing assets of 14 thousand billion Yuan in 1999, etc. But all these measures have not touched the unreasonable system foundation of the banking system, therefore unable to control the risk increment fundamentally and improve performance. At present, the hidden risks have been exposed. Especially, in face of competition and challenge brought by foreign financial institutions after entering the WTO in 2006, it has become the most important focus for Chinese commercial banks to reform the system and control the risks. So, to study the risk characters, controlling and solutions of Chinese commercial banks in an open market have significance both in theory and realism.This article is divided into four parts. The first chapter mainly describes the definitions and representation forms of commercial banks and the relative risk, then analyses causes of the risk; in the second chapter, many famous economists and their theories about bank risk are introduced from both macro and microcosmic aspects, which are the basis of this article; from the third chapter, we elucidate the implied particularities of Chinese commercial bank risk with the analysis of Chinese commercial bank system and its efficiency, and explain the risk which our commercialbanks will face in the open market; the last chapter show the measures to keep away the managing risk of our banks, which mainly include joint-stock reformation of state commercial banks, risk control system of commercial banks and the whole positive and effective macro market.The innovations of this paper are the collection and exertion of data on Chinese commercial banks. Based on these data, this paper analyses the whole risks which our banks have faced and will meet in the future in an open market. According to my own working experiences, I bring forward my ideas on system reformation and risk control of commercial bank, especially on credit risks' pre-control and system rebuild.