China's Commercial Banks Off-balance Sheet Business Risk Management Study

With the financial sector increasing fierce competition and constant innovation of financial products (from example absorbing past deposits, issuing loans), many a full range of business development models have become the consensus of banks. In this case, the commercial bank OBSA is a new business, involving customers with all aspects of industry, provider of fees and other sources of income. This commercial bank OBSA must develop and expand to become competitive. Commercial bank OBSA 's development, at the same time, faces growing business risks. The requirements of OBSA management have become more urgent. In this paper, the general risk analysis (a clear concept of OBSA risk) is summarized. In this paper I'll outline the main risks faced by business type, show analysis of OBSA risk characteristics, and show the different types of risk management practices. I'll attempt to explain the OBSA importance of risk management, based on the combination of China's commercial banks risk management and OBSA's current situation. I'll provide an in-depth exploration into the solution of OBSA risk management.Competition in the banking business occupies an increasingly important position. OBSA risks are part of the overall risk of the bank. OBSA's main risks include credit risks, market risks, operational risks, liquidity risks, reputation risks and so on. Because OBSA's risks are less transparent, risk dispersion is hidden. It's more difficult to predict and assess the commercial bank's OBSA risks management requirements. Therefore, the implementation of effective risk management strategies is of great significance. OBSA's risk management is conducive to the operation of commercial banks and the rapid development of commercial banks. This will lead to enhancing core competitiveness with in the business and also between other banks.Compared to western commercial banks, China's commercial bank's OBSA is still in its infancy. The pace of development is far from being mature. China's commercial bank's OBSA status quo is relatively slow paced concerning development. China's OBSA's risk management systems and tools are not perfect. The lack of effective risk management tools, and internal control systems lead to imperfect supporting risk management systems. The lack of independent risk and credit rating agencies, risk management, the lack of personnel, can-not meet the socio-economic development of the bank. OBSA and it's risk will increase in complications. Thus commercial banks and regulatory authorities must improve risk management awareness. They must take appropriate measures to establish a sound OBSA management system, improve and strengthen the OBSA financial supervision, and create new tools to strengthen management methods. They must improve risk management levels by rapidly being active in OBSA.