Capital Market Development Under The State-owned Commercial Bank Risk And Reform

In recent years, with the open-up and reform of China's financial industry, especially the capital markets and acceleration of financial innovation , commercial banks are linked closely with non-banking financial institutions through capital, finance and other businesses. They build up a complicated and risky financial system. Such close links bring positive competition and opportunities to improve the efficiency, while also make the commercial banks highly vulnerable to the adverse impact from outside. These would increase the possibility of crisis for the state-owned commercial banks and even the whole system.The research purpose of this thesis is to offer a new visual angle of the risk control analysis for the future reforms of state-owned commercial banks.The main idea and logic structure is as follow: with the state-owned commercial banks as the study object, first defining the commercial banking risks and analyzing the cause and channel of new risks caused by the prosperity of capital market and the aggression and competition of foreign banks based on the analysis of status quo of both capital market and commercial banks. In the end , this thesis will provide some suggestions on how to deepen reforms of the state-owned commercial banks from risk management aspect.In order to guard against risks and deepen reforms for the state-owned commercial banks, there are few methods we can take: first, to continuously property right reform. Second we should make adjustment on operational strategy, such as to develop capital-market related business innovation and auto-risk-preventing business. Third efficiency should be brought into traditional businesses and quality customers should be priority. And at last the employees should be taken good care of by improving stimulating and restriction mechanisms.