Discussion On Commercial Bank's Risk And Its Prevention

Since 1980's,with the rapid process of the world economic integration and the financial globalization, financial risks have also added up continuously, in succession, Mexico and Asia financial risks had taken place accordingly, especially the Asia crises' affection is serious to the world economy. In the Asia crises, many banks were closed or went bankrupt. In the present, while our country is in the course of establishing the socialism market economy and the exchange of the financial structure, many problems for the commercial banks are disclosed continuously. For example, the problem of the bad loans, the problem of the social credit establishment, all these problems' solution is to protest and dissolve the commercial banks' risks and potential risks. Once the commercial bank risks happen, it will affect the stable development of the national economy, the stabilizing of our country and the society, the international credit and appearance of our country, the profits of the commercial banks' employees and customers. Therefore, the protest to the commercial banks' risks is a long way and constant tasks, we should be conscious it.The chief contents of this article are to study the commercial banks' risks, its presentation forms and causes, its harm and protection ways. The bank is run by the high lever, its presentation includes: unmatched credits and debts, the excessive intervention of the government, the loose management of the credits, the loose control, trust and acting as agent. Its causes include: the illegal intervention of the government, the worse credit environment of our society and the imperfect law structure, the monopoly credit system in our country and the credit system which banks are predominant, disorder information, the abnormal inner management of the commercial bank, the low quality of the employees, and the unstable financial inspection with the market economy. The commercial banks' risks are very harmful to the economic development and the stable society. We must pay attention to it and take some measures to protect and dissolve them. First, the bank' inspection committee must enforce to keepwatch on the commercial banks and ensure the safety of the financial system, choose the right macroeconomics policy, the commercial banks should make decision freely, legal exchange rate and interest rate policy, enforcement of the inner management and control for the commercial banks, the enforcement of the credit management, especially the system construction of the people, establishing the inspirable and restrictive system, destroying the risks in the beginning. In the process of the risk management, we should teach experiences of the advanced countries' risk management and establish the overall risk management system.The chief innovations in this article:First, I classify the people's risk as a kind of the commercial banks' risks and make the classification of the commercial banks' risks perfectly.Second, I put forward that the people are the base of the protection to the commercial banks' risks. We should pay great attention to the managers' education and training, the moral and law education. The good quality of the people in the commercial banks is the base of the protection to the commercial banks' risks.