Research On Controlling Compliance Risks Of Chinese Commercial Banks

Nowadays more and more countries have begun to take the compliance risks of commercial banks seriously. The reasons of compliance risks are not follow the law. Once the compliance risks happen, commercial banks would suffer to not only the punishment of law, but also the great lost of property and reputation. Compliance risks are different to the traditional risks, as it appears with the development of the global finance. To commercial banks, the greater interests they get, the more risks they are subjected to. More and more financial crisis broke up and spread to the whole world. And behind the crises, the reasons are the compliance risks.In 2005, Basel Committee on Banking Supervision has published <Compliance and the inside department of banks>. After the practices and researches, a lot of global banks and developed countries have gotten experiences on supervision of compliance risks. We Chinese banks could be benefit from these experiences. As to regulating compliance risks, in 2006, China Banking Regulatory Commission has published the regulation--<the Guide of Compliance risks Regulation of Commercial banks>, it is good for banks to manage.After reading books and articles about compliance risks, using history and comparison ways, the article offers an new opinion which are from the law angle. As now more books and articles are written from the financial and administrate angles, so that is this article different from those ones.The article points that regulations should include two aspects:management of compliance risks by banks themselves and the supervision of compliance risks by financial regulatory commissions. To manage the compliance risks should perfect to the organizations, systems, insurance and philosophy; and to supervise compliance risks should establish the whole law system of the regulation.The article includes five parts:The first part is about the theories of compliance risks. It includes the definition, the background, the consequence of the compliance risks.The second part introduces the main theory of controlling compliance risks. Contrllong compliance risks should contains two parts----managing the compliance risks and regulating the compliance risks.The third part is foreign experiences of controlling compliance risks. These experiences could be learnt by our banks.The fourth part is about the situation of our banks'controlling compliance risks; at the same time, there are a lot of problems in controlling compliance risks in our country.The last but not the least important part is proposals to improving controlling compliance risks in our country.By researching carefully, the article tries to find the better measures of controlling compliance risks.