The State - Owned Commercial Bank's Risk Management System And Countermeasures

Bank risks, which not only threaten the development of economy and the stability of economic order of a nation, but also directly influence the development of international economy and the stability of a region of international politics, especially in today' s fast- developing and integrated international economic system, is a vital question for all the market economy oriented counties all over the world to study urgently. Ours is a developing country with the market economy system preliminarily established. Influenced by conventional system, the imperfections, the instability and lack of adaptation brought by the transition of economic system determines that there will be serious bank risks in the process of economic development. The possibility of occurance and serious consequences of bank risk should arouse our vigilance. The four state-owned commercial banks, the main force of China' s commercial banks, is the super "aircraft carrier" of the national banking system monopolizing most of the market shares of the national banks. Hence the risks of commercial banks directly determines the national financial order and economy stability. This thesis explores the problem of bank risks of the national commercial banks. It first provides an analysis on the formation of risks of the state-owned commercial banks which is the distorted result of triple conducts of government, enterprises and banks influenced by system transformation, government interference and financial management; closely connected with the management ftadministration of banks, the performance of the staff and also related to state-owned enterprises and the credit environment. In a word, it' s caused by many-sided reasons. Although state-owned commercial banks pay much attention to risk, all sorts of risks still gradually expose themselves owing to the fact that they have been greatly influenced by the above-mentioned reasons over a long period of time &the mismanagement of risks. This thesis , therefore , constructs the management system from three perspectives in consideration of the advanced methods adopted by international commercial banks in combination with our practical situations. First, reforms should be further carried on so as to create a good external environment for state-owned commercial banks. Secondly, managing and administrating systems should be perfected so as to enhancecompetitive capability. Thirdly, external management and comprehensive administration should be adopted and enforced so as to avoid and dissolve bank risks of state-owned commercial banks.