Study On The Countermeasures Of China's Small And Medium Commercial Bank Risk Management

Small and Medium-sized Commercial Banks (SMCBs) are the results of commercial bank system transformation in China. In the past decades, SMCBs have acquired great development, and have become an important part of financial system. The development of these banks also promotes economy development and system transformation. With further opening up in banking sector and deregulation of interest rate, SMCBs will encounter severe competition from foreign and domestic counterparts, and their risk exposures will be greater. Under such background, it is meaningful to have a close study on risk management of SMCBs.Starting from SMCBs, this thesis tries to find out their risks, and to analyses risks, then to give some suggestions on the management of risks. This thesis is divided into four parts:Chapter 1 firstly gives a definition about SMCBs, and then describes the development process of SMCBs, and disclosures banks' weakness.Chapter 2 presents different classification of bank risks. Then compared with the state-owned commercial banks, analyses the main risks of SMCBs and these risks characteristics at present.Chapter 3 identifies internal and external risk resources of SMCBs based on the above chapter. Then from banks own side, discusses the internal risk resources mainly.Chapter 4 puts forward that SMCBs should respond actively to risk management from five aspects. First, banks should establish risk culture. Second, banks should improve their governance. Third, banks should enhance risk control. Fourth, banks should strengthen their risk management of the assets and liabilities. Finally, banks should consider the relation of risk and return.The innovation of this thesis lies in that risk management of SMCBs is chosen to be analysed. From SMCBs' point, some suggestions are put forward. Now, risk management can be seen as a core competence of banks., so SMCBs should pay more attention to risk management.