Research On The Development Of China 's Banks And Its Risks

For a long time, China’s banking system due to other reasons, has been a savings and loan spreads as the main source of profit, but in recent years with changes in the domestic financial sector development of the situation, the existing commercial banks to deposit and credit business core mode of operation has been a huge impact, especially in the domestic interest rate market to promote the introduction of private bank and direct financing incentives, the development of China’s banking industry in transition presents new challenges. 2010 domestic credit policy tightening, there is an increasing outside financing needs, there are credit lines, control capital adequacy ratio, risk capital provision rate and other regulatory indicators, a contradiction banking business needs and regulatory policies, business banks continue to game process innovation in business and regulatory authorities, constantly seeking to develop innovative products and services and, this time, low capital occupied interbank business, high-margin income and other characteristics by the commercial banks favor, quickly became restructuring and development of the commercial banks and to explore new collective select profit growth.Annual growth rate of rapid development between 2009 and 2013, interbank business 16 listed banks, interbank assets and liabilities were sprayed pit expansion, particularly the "King of the industry," said Industrial Bank and Minsheng Bank, its interbank assets even up to 100%. Interbank business brings in high profits for commercial banks but also hidden a huge risk, especially the outbreak of the way it works in high leverage increased risk of lengthy business chain increases the risk of infection linked funds under lower capital investment and the degree of concealment, part of the business risk side of the balance so that commercial banks face liquidity situation actually very fragile, easily lead to the risk of the financial system.This article is based on the current domestic financial deepening reform, bank restructuring and development, and other large background, development status and risk of infection Mechanism of interbank class business innovation. First, by analyzing the current situation of the development of interbank business, the main business model and product innovation necessity and the possibility of rapid development; secondly start with the potential risk of China’s commercial banks were investigated interbank business from micro and macro levels, including the micro flow risk, credit risk, compliance risk, including the impact on the macro-regulatory effectiveness, monetary policy and the real economy, from a qualitative point of view the objective set forth the risk of the development of banking industry currently exist; again from metrology quantitative information entropy ideological point of view to establish a two-way risk exposures matrix by iterative approximation algorithm MATLAB software under different loss rate of inter-bank liquidity risk contagion effect, the conclusions show a large number of financial and operational linkage between interbank business generated by such extreme risk Easy two-way transmission of the inter-bank, while the risk of infection and the intensity of the different types of bank resilience different. Finally, through qualitative and quantitative analysis of academic and campus involvement combined with industry practice and other business practices concluded that banks consider three aspects should be the bank’s internal risk management mechanism, supervision mechanism, reform the financial system, by strengthening joint management of funds and risk management services to guide interbank healthy, transparent and sustainable development development.