Analysis Of Situation And Countermeasures Research For The Compliance Management Of China's Commercial Banks

The compliance risk management is at its initial stage in China. The building of regulation, methods of Quantization, risk awareness, risk culture of banks have fallen far behind from the requirements of modern bank's compliance risk management. Although compared with the big banks in western developed countries business in China's banks is less complicated, the compliance risks in China's banks are very serious due to lack of regulations and sound system of monitoring. Therefore to strengthen the management of compliance risks of China's banks is of great present importance. This paper starts with illustrating the basic concepts of compliance, compliance risk, then analyzes the present situation of bank compliance risk management, problems and then puts forwards several Countermeasures for dealing with itThis paper includes five parts:The first part is introduction. This part brings about the background and reason for choosing this subject. Compliance is the basic requirements which imposes on domestic commercial bank and also an important standard for measuring the management level. How to solve the problems that lie in the bank compliance risk management and improve the compliance management is now an urgent problem task. This is what makes this paper count. And in this part, reference introduction, methodology and content arrangement are also included.The second chapter is a theoretical research on commercial bank compliance. First the paper analyzes the generalized concept of "compliance" and defines it as a state at which an individual complies a rule or the process of achieving it. This meaning has several levels. Then the concept of "commercial bank compliance" is put forward with characteristics compared with ordinary enterprise. And with the help of a group figures, we come to the conclusion that compliance risk is the major reason for bank risks especially operational risk. Finally with the analyzing of several cases, we find that lack of compliance management will bring severe loss of banks and then realize the importance of compliance management for the commercial banks.The third part is the research on the current situation of compliance management of China's banks. We first make a comparison between domestic banks and overseas banks, by doing so we find the gap between them. On the research of institutions we come to the conclusion that most domestic banks have set up their organizations of compliance management and at the same time the major disadvantage is the insufficiency of deployment of the compliance management regulations.The forth part is the strategies of improving the compliance management. The strategies include that: building an effective framework of organization on compliance risk management; Incentive mechanism and accountability should be introduced; building compliance information database; building compliance auditing system; cultivating compliance culture. These strategies cover organization establishment, culture cultivation and technological methods can offer reference to commercial banks.The fifth part is conclusion. In this section we give a summary of the research contents, major work and its significance. At last we bring forward the shortcomings of the paper and the problem which need further research.