Research On The Comprehensive Risk Assessment Of Chinese Commercail Banks

At present, commercial banks are in the absolutely central position of Chinese financial system.In our daily lives and the social economy,commercial banks are more important than the industry of security and insurance. It is very important for regional economy's stability and development to keep the commercial banks safe and efficient.So,the supervision and management on commercial bnaks are always the major task for financial supervisors. At the same time,evaluation of risk is the precondion and emphasis for risk management. Since the financial crisis of Southeast Asia in 1997,especially the bankruptcy of LTCM in 1998,persons for risk management had been aware of the fact that it was not enough to manage the credit risk or market risk singly,new banking crises are always caused by various of risks. Because of these new problems,the method that evaluates and manages the comprehensive risk of commercial bank was brought on this century.This paper sets up a index system to assess the comprehensive risk in commercial banks.Firstly,this paper reviewed the related documents refer to risk evaluation and then introduced some theoris in detail about the commercial banks.Secondly,relying on the detailed analysis of the developmental situation of our country's commercial banks and the request of financial supervisors,this paper preliminarily seted up a index system to assess the comprehensive risk in banks. Then,identified all the indexes by cluster analysis. Thirdly,this paper got the combined weight by relative entropy approach based on the results respectively worked out by AHP,Fuzzy AHP and principal component analyses. Because of the important influence of the index weight in synthetical appraisal, this part is the emphasis of the paper.Finally,this paper got the comprehensive risk figure of each of our country's ten leading banks by Fuzzy Synthesis Appraisal Method. On the base of each banks'risk figure,I got the integral risk figure of our commercial banking system to assure whether the regional economy was stable and healthy.