A Study Of China's Commercial Bank On Financial Risk Management

With the development of market economy, commercial banks play a very important role in promoting the steady increasing of our national economy. There are two severe challenges on venture control in commercial banks because of their relative historic reasons and limitations of themselves. On the one hand, the bad assets are increasing gradually. On the other hand, the transit means and channels of commercial venture is more and more and the management venture is becoming more and more difficult in the new situation with the competition from the same industry and Chinese entry into WTO. This paper presents methods and ideas in order to perfect finance venture which is the most important venture we are facing with in Chinese commercial banks. This paper first defines the credit venture in commercial banks. Then it analyzes necessity of building on the analysis system based on the numbers on financial venture and the major problems in financial evaluation. With the help of vague comprehensive evaluation, we set up our model of vague comprehensive evaluation on financial venture in our commercial banks and we experimented on it. Finally based on the facts of our commercial banks, we put forward strategies to control and prevent our commercial banks from financial venture in the minimum and maximum aspects.