The Country Risk Assessment And Analysis In The Transnanional Operation Of Commercial Bank Of Bank

With the development of the economical globalization, financial integration, and the expanding strength of our commercial banks, overseas branches of commercial banks increased under the guidance of the "going out" strategy. Bank of China, Industrial and Commercial Bank and other large commercial banking institutions is accelerating the pace of overseas expansion. Bank of Beijing and China Merchants Bank followed .In the early year, Industrial and Commercial Bank set up five branches in Europe by way of mergers and acquisitions abroad.With the rapid development of Commercial Bank along cross-border operations, the importance of country risk management is more obvious in the cross-country risk management in commercial banks. It is important that how to establish a suitable risk assessment and evaluation system. Firstly, the author discusses the basic theory of country risk of the transnational operations of commercial banks. He also analyzes the concept, characteristics classification and manifestations of country risk management in the commercial bank transnational management. Secondly, the article reviews the course of transnational operations of commercial banks. It is can be traced back to the beginning of 20 century .Currently, the Bank of China has the most overseas branches in China. Industrial and Commercial Bank in the last century accelerated the pace of overseas expansion 1980. As the development of China's commercial banks transnational operations, the problem of country risk management in the country are growing. There are loopholes in the internal risk management. We also lack the country risk management tools and techniques .The comprehensive risk management system was not established. Be lack of the consciousness of country risk management and a national rating system. Secondly, the country risk trends are analyzed from the debt crisis, international trade, international investment and other aspects of the development of China's commercial banks. In response to the 2008 financial crisis, governments carried out easy monetary policy and fiscal policy to stimulate economic recovery. But with the subsequent sovereign debt crises, in particular the euro zone sovereign debt crisis made the debtor and the creditor's country risk increase. Then the article focused on assessment of commercial banks national risk and in the method of a combination of qualitative and quantitative analysis. Finally, commercial banks in China are discussed cross-country risk assessment system for operating the establishment by way of combination of the empirical analysis and normative analysis. It is the innovation of this paper that one of China's loan classification systems based on China's commercial banks raised the national risk of cross-border operations five-category classification methods, and proposed for each classification of risk control methods. Finally, policy recommendations to prevent country risk are provided. In order to take the most effective way to disperse and avoid risks, we shall set the credit risk national limits, take a flexible approach for effective national risk aversion, establish the information system and strengthen the internal and external monitor.