Operational Risk Research Of Postal Savings Bank Of China

After more than nine months of intense preparations, Postal Savings Bank of China which is the fifth largest bank of China formally established on March 20^th,2007. This represents another substantial step forward in the China's postal savings system reform after the establishment of China Post.The postal savings resumpted in 1986.After 20 years of development, it is covering urban and rural areas which has now been the most extensive network, the largest trade volume of personal financial services network: 36,000 Savings business outlets, 45,000 exchange business outlets, 20,000 international remittance business outlets. Among them, nearly 60 percent of the savings outlets and 70 percent of the exchange outlets scattered in the rural areas, which has been an important channel for personal settlement of urban and rural residents. By the end of 2006, the balance of postal savings deposits reached 1.6 trillion rmb , the scale of deposits out of the fifth. Postal savings funds independent of the use of foreign currency has been closed to the scale of 1 trillion rmb. The Postal savings computer system runs stable, the interbank transaction success rate is in the forefront of the country, and the transaction error rate maintains a minimum level.Over the years, the development of the postal savings business has relied on the People's Bank of deposit spreads policy, as the result of which, a high balance of the high interest rate differentials becomes the source of postal savings. Therefore, "not only keep the loan-to-safety" has become the slogan of postal savings. However, as the postal savings is becoming bank, such spreads on the zero risk business model gone forever. From a savings institution which only can absorb deposits to be the commercial banking which can credit to depositors, from the past management of the balance of liabilities into assets management, the postal savings bank is in access to development opportunities and at the same time it will inevitably face an unprecedented financial risks. As long China Post mixed and the "zero risk" to the spread of revenue, the postal savings risk control personnel extremely scarce, while also not paid enough attention to risk control. With the establishment of the postal savings bank, the establishment of a modern commercial bank risk management has been a long-term mechanism delay.New Basel Accord, issued by Basel Committee on June 26th,2004,which brought operational risk into the framework of capital adequacy ratio, and required financial institutions to operate the corresponding capital for operational risk, operational risk numerical management will be important area of bank operational risk in future. Nowadays, most of Chinese banks are experiencing the transition period to the real commercial banks, with imperfection of internal control mechanism. Operational risk is one of the main risk resources, and the proportion to the risk of commercial banks is far larger than that of international level. It makes the research of measurement and management of operational risk important in Postal Savings Bank of China.The author sorts out the measurement of operational risk in New Basel Capital Accord and the recent achievements in the theory field. Furthermore, with the Domestic commercial banks and the actual situation of China's postal savings bank against the status and characteristics, the author proposed measures in accordance with the internal law-based operational risk measurement methods suitable for the establishment of the postal savings bank in China's own characteristics of the operational risk management system.