China's Commercial Banks Risk Disclosure

一.The Background of Research Since 1990,s, with promoting of financial globalization and quickdevelopment of financial innovation, banking supervision allover theworld are more and more recognizing the limitation of traditionsupervision measures. They insist that market discipline is of extremeimportance to the safety and soundness of banking system .One of thepremise for effective market discipline is that market participants shouldbe able to obtain true, reliable and timely information, which faithfullyrepresents the financial condition and financial performance of the bank.So the importance of banking transparency has been emphasized. Chinahas been a member of WTO, in order to fulfill obligation of enhancingbanking transparency,it is imperative to establish one systematic andcomplete set of information disclosure rules for commercial banks withinnext one or two years. It is necessary to promote disclosure of bank information, not onlyfor international banking supervision, but also for consummating marketeconomy mechanism, strengthening market restriction of bank, andenhancing banking transparency. But in the process of banking revolutionof china, it is the obstacle of banking development that half-baked,insufficient and untimely of bank information disclose. It is the primarydirection of banking revolution to enhance banking transparency. In thepaper, the writer brings forward risk information, which is the importantpart of disclosure of bank information. As far as I am concerned, bank is ahigh-risk industry .It must face all kinds of risk all the time, such asfinancial risk, management risk. 二.The main concept of the paper At first, we introduce the conception of risk disclosure, secondlyanalyze the present circumstance of risk disclosure of commercial bankand appraise the circumstance, on the bases of the information of fourlisting commercial banks. At last we hope to table a proposal to resolvethis problem, in the method of consulting international advancedexperiences and considering the present circumstance. So the paper isdivided into three parts to discuss these viewpoints. Chapter Ⅰ :The Risk of Bank and Information Disclosure ofCommercial Bank Risk of Commercial Bank is not only the best typical risk, but alsothe most important aspect of finance. On the other hand, the risk offinance is more than risk of bank. For example, at the present time, thefinancial risk is centralized four aspects, risk of bank, risk of foreignloans, risk of securities, risk of foreign exchange. It is benefit forreducing risk of financial system, that we protect depositor and promofair competition among the banks. The risk of information should be thecore of the disclosure of commercial bank. Because the commercialbanks are a special industry of, risks of them are far more than that ofother industries. Therefore, it should be particularly paid attention to thedisclosure of risk information. ChapterⅡ:The present circumstance of disclosure risk of listingcommercial bank in our country Because of the especial situation of our country, the risk of bank isdifferent from the developed countries,, which related credit risk, fluidrisk, interest risk and exchange rate risk, operation and technology riskand others. In order to know the information clearly, someadministrations draw up a series of policy and legislation to precept thedisclosure of risk information. Since 2000, China Securities RegulatoryCommission, the People,s Bank of China and China banking regulatorycommission have drawn up a series of policy and legislation aboutdisclosure of risk information. Now, all of these policy and legislationhave become the authoritative document. We have researched the fivebanks, reports of 2003(Shenzhen Development Bank Co.. LTD,SHANGHAI Pudong Development Bank, China Minsheng Bank Corp.LTD, China Merchants Bank, Hua Xia Bank) and drawn a conclusion ofdisclosure of risk information in our country. They all adopt qualitativemethods to disclose risk information, none of them adopts quantitativemethods, and it is not enough for the...