The Risk Management Studies Of Chinese Policy Banks In The Reform Process

With the industrial structures' changes and the market economic evolution in China, the policy-oriented finance (banks) is playing the functions of the complementary,support and guidance in the financial sector. On the one hand, it should continue to complete the policy-related business required by the Government, and on the other hand it has the rights to choose the commercial business that owns both social and economic benefits within the scope of the policy's permission. With China's policy banks to gradually establish a modern enterprise system, as well as continuously improve the commercial operation, the risks inhering in the different types of the business are increasingly complicated; especially there are many different risks between the policy-related business and the commercial business.This paper mainly used the theory of economics,finance,management,statistic etc, utilizing standardized analytical methods,methods of integrating theory with practice, doing interviews with the internal staff. Through referencing the foreign policy banks' risk management experience, as well as by combining the theory of general and special risks with the practical problems that Chinese policy banks have in the reform process, analyze the specificities of liquidity risk,interest rate risk, credit risk,moral hazard and the internal operational risk because of operating the policy business. The reason the risks faced by Chinese policy banks in operating the policy-related business and the commercial business have different performances is that the different business' nature leads to the differences of the operation and management.Then, try to propose some advices for the corresponding risks: (1) by reducing the mismatch of the assets and liabilities' maturity structure, continuously enrich the capital and actively treating the bad loans to reduce liquidity risk; (2) by using the national credit to innovate marketing ways and varieties of bonds, broadening distribution channels and optimizing the interest rates' pricing mechanism of policy and quasi-policy loans to lower interest rate risk; (3) by continuously improving the protection and compensation measures and establishing appropriate exit mechanism for credit funds to reduce the credit risk;(4) by establishing the enterprises and governments' credit systems and strengthening the supervision and disclosure of public opinion to avoid the risk of moral hazard; (5) by establishing a clear awareness of the risk prevention and control in bank,building a sound internal control system and improving the management of internal audit functions to reduce the risk of internal operations.