Measurement And Empirical Research On Operational Risk Of Commercial Bank In China

Operational risk lives in all fields of commercial bank,and it is called big 3 risk with the credit risk and market risk. In recent years, With the rapid development of finance and financial tools, Operational risk has caused so many serious cases across the globe. The New Basel Capital Accord, which was issued by Basel Committee in June 2004, brought the operational risk into the risk management framework and even required banks taking operational risk into account when calculating the economic capital. But there are still no general techniques accepted by scholars and banking management. operational risk incidents happen frequently in our country. Operational risk increasingly becomes the main risk faced by banks in China. So, how to improve operational risk management level and prevent operational risk on the basis of improving operational risk measurement techniques is the urgent task of our banking. Under the background it has weighty significance to study operational risk measurement of our banking.This paper introduced the content, classifieation and eharaeteristies of operational risk, described a variety of operational risk measurement methods in details, and introduced operational risks situation and causes of commereial banks of China.On this basis, by making the use of BIA and more appropriate to the current situation of China's Commereial banks of the revenue model, this paper has measured operation risk Shanghai Pudong Development Bank,China Minsheng Banking Corp.,ltd,China Merchants Bank and Bank of China as the researeh objects. Finally, This paper pointed out problems of operational risk measurement of China. How to develop and improve operational risk measurement of China's commercial banks, this paper put forward his proposals.As the most important finance organization in the modern economy, their safety plays a vital role in the entire world economy. Therefore, effective risk management has been the focus of the study. Its core competitive ability lies in the risk evaluation and management. What's more, the risk evaluation conditions of banking directly affect the stability of finaneial system and the soeiety. By the quantitative researches on operational risk in China, our banking can form correet operational risk management ideas; strengthen operational risk measurement consciousness; gradually build up operational risk management system and improve operational risk management level, which is helpful to realize the quick and stable development of our banking.The innovation of this paper lies in. that, research on the operational riskmeasurement methods which, adapt to China's present conditions and futuredeveloping trend. I use Income-based Model, analyze, compare and contrast the operational risk of four China's commercial banks. Comparing with the previously researches, this paper has improved on bank sample, external data and explanatory variables influencing the net profit. After lots of regressions, at last I chose actual rate of increase of GDP,business climate index and Shanghai Stock Index as explaining variables.