The Study Of Operational Risk Measurement Of Our Commercial Banks By Income Model

In the resent years, banking supervision authorities have gradually focused on other risks besides the market risk and credit risk after a series of great loss happened on banks, which called operational risk. The New Basel Capital Accord has put this kind of risk, say operational risk into risk management. But in our country, the study of operational risk is so limited that it's of great significance to make research into operational risk now.First and foremost, the paper introduces the risk and the risk measurement and the rules and regulations of measurement of operational risk in the New Basel Capital Accord and the basic points of model of measurement of operational risk. According to the different prospects, the model of measurement of operational risk can be divided into Top-down Approaches and Bottom-up Approaches. Top-down Approaches mainly focus on the general target of banking industry, for example net income etc, which is used to measure and manage operational risk from macro prospects. While Bottom-up Approaches focus on every single commercial bank or say from micro prospects. But in the New Basel Capital Accord, there exits three methods of measurement model: The Basic Indicator Approach, The Standardized Approach, The Advanced Measurement Approach. Then the paper focuses on the conditions in China. Using the public numbers from commercial banks, make the empirical analysis of commercial banks'operational risk and then at last take the calculation of venture capital. By income model one of the top-down models measuring the operational risk, the paper focuses on empirical analysis of two commercial banks in China and establishes the relevant relations between the net income and the rate of bad debts and the economic growth from the macro perspective and finally gets the result about the calculation of venture capital. It shows that to some extend income model can reflect the operational risk and our country is faced with the serious operational risk and also the effect of the market element is stronger than the credit element in the income model.At last, the paper makes some suggestions about the measurement of operational risk in China. The paper focuses on the introduction of income model and the significance of the paper is to make some trial research into the operation of income model in the field of banking in China. To some extend, the paper is of practical and directive significance from theory to practice.