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Sheet Of Commercial Banks, Business And Risk Prevention

Posted on:2002-06-02Degree:MasterType:Thesis
Country:ChinaCandidate:Y R WangFull Text:PDF
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With the development of the economy globalization and the increase of the international competition, China's financial industry is merging into the international economy. China's banks are also being influenced by the international economy while utilizing its resources. Since the middle of 1980s, financial innovations have given an impetus to the Off-Balance Sheet Activities. Firstly, according to the factor of China's entering WTO, the article analyzed that foreign banks, which can operate almost all kinds of business, are to compete intensively with China's banks depending on their favorable conditions in capital, technology, experience, etc. The Off-Balance Sheet Activities is the first focus in this competition, it is the key for foreign banks to expanding their business scope, strengthening their competitive capacity, and increasing their profits, consequently, it is urgent for China's commercial banks to develop the Off-Balance Sheet Activities. Secondly, the article said that it is essential for China's banks to develop the Off-Balance Sheet Activities so as to increase the profits, strengthen the international competitive capacity and preclude the possibility of financial risk. The reason is banks can guarantee advantageous profits, keep a high capital sufficient rate and lessen the possibility of the financial risk with a little or even no capital increase in the Off-Balance Sheet Activities. However, there are still latent risks in the Off-Balance Sheet Activities, which could bring a disaster to the banks' operation. Therefore, it is so important theoretically and practically to study and research the Off-Balance Sheet Activities and its risks that banks can develop regularly and effectively lessen the possibility of the financial risk and strengthen the competitive capacity. Thirdly, the article introduced the Off-Balance Sheet Activities in detail from not only the business of financial trade, financial guarantee and financial derivation, but also the risks in credit business, banking operation, markets, application of laws, and government policies.Finally, the article raised the methods of how to deal with the consequence caused by the financial risk and how to make strategic decisions in the Off-Balance Sheet Activities. It also systematically concluded the different methods and steps of precluding the possibility of financial risk in different sort of Off-Balance Sheet Activities, emphasizing the method of investment distribution. The article will certainly guide and help China's commercial banks to carry out the Off-Balance Sheet Activities effectively.
Keywords/Search Tags:Commercial Bank, Off-Balance Sheet Activities, Financial Risk, Financial Innovation
PDF Full Text Request
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