Research On The Business Risk Assessment Of Chinese City Commercial Bank

City commercial banks are the interim products of China's economic development. It is very important to make outstanding contributions to the economy development, especially help the small and medium-sized enterprises go through the financial crisis, guarantee our sustainable economic growth. But the pain from the financial crisis urges us to increase the banking regulation, especially increase the risk control ability of the banks.Due to its unique market positioning and the important contribution to the small and medium-sized enterprises, we should strengthen the ability of risk control, but the premise it to have accurate evaluation of the risk management. Because of not completed historical transformation, not widely business areas, not executive positioning inaccurate, etc, the business risks of city commercial banks is very unique, and with our economic data incompleteness, it's very difficult to evaluate the business risk, and in a certain extent the conclusion of the traditional evaluation methods lost realistic significance. In the context of financial liberalization, business risk assessment methods need to be upgraded, it's theoretically urgent to comb and optimize the methods of evaluation, and need also summarize related development experience. Therefore, there is important theoretical and practical significance to pay close attention to developing process of city commercial banks, check business risk characteristics in a depth, and upgrade and implement appropriate risk evaluation methods.This paper adopts the method of theoretical analysis.Firstly, it summarizes and analyzes domestic and foreign assessment methods of banks risk. Secondly, it focuses on causes of China's city commercial banks business risk, and discusses it in four areas.Then it introduced gray system theory and its applicability. At last, build evaluation model based on the characteristic of city commercial banks and to validate the model reasonable, and gives further suggestions.The main features and innovations of this paper lie in two aspects.Firstly, it uses gray system theory to build evaluation model with a breakthrough of our economic incomplete data. Secondly, it combines grey relational analysis method, the grey clustering method and factor analysis to ensure the accuracy of the information and objectivity. They are certain theoretically and practically significant.