Research On Commercial Banks' Foreign Exchange Risk Management In China

Commercial banks' ability to manage their exchange rate risks is the direct influencing factor to the fine condition of the banks. What's more , it relates to the country's financial security. So to enhance the ability of managing exchange rate risks is so vital. Since July 2005, China has performed many innovations in the exchange rate formation system. With the enlarging flotation in RMB exchange rate, studies on commercial banks' management of exchange rate risk are essential.This thesis focuses on case studies, combining the analysis of macroeconomic and microeconomic, logical analysis and historical study, and the norms of a research and empirical analysis as well as. Through the research to exchange rate risk management cases' of Citibank, Ruisui group, and HSBC, it summarizes that banks abroad have independent and efficient system of market risk management organizations, a good risk management culture, made the management measuring and modeling, together management techniques and IT technologies, and made the management specialization.The author has studied the realities of our typical commercial banks on their status of the exchange rate risk management, and learned the experiences of advanced international commercial banks, then come to some new ideas about how to strengthen the exchange rate risk management of commercial banks in China. The thesis proposes the suggestions that strengthen our country commercial banks' exchange rate risk management, that is, we should start from the organizational structure, performance evaluation and risk culture, methods and tools, business processes, information systems and other aspects.