Study On Risk Management System Of Commercial Banks

With the further deepening of economic globalization and financial market volatility, the business environment of commercial banks faces unprecedented challenges. At the same time, the accelerated pace of China's reform and opening up, improving speed of financial innovation, commercial banks increasingly complex business, become more diverse sources of risk. How to improve risk management capability of domestic banking has become a major issue to be resolved as soon as possible. China's banking system has withstood the impact of financial crisis in 2008, which should concern about the next step of the development strategy in the new situation. To enhance the management capacity of China's banking is the bank's main task during the transition, and challenges.This paper discussed the comprehensive COSO risk management framework for commercial banks to provide risk management standards and frameworks, from the example of Western commercial banks, summed up the modern system of bank risk management organization. Based on the Basel Accord Basel Committee issued for commercial banks, the paper further explained its risk control activities. Through comparative analysis, the article pointed out that the two frameworks of risk management of commercial banks provide a useful support and influence. However, the coincidence of the two regulatory models for commercial banks will make the risk management process difficult. If the risk of COSO framework and the operational risk of Basel New Capital Accord can be equated, the two models may achieve integration perfectly.After the financial crisis, the Basel Committee issued the BaselⅢquickly, it proposed the banking industry new requirements. This paper analyzed the impact of BaselⅢwith the forecast data of Chinese commercial banks, which in short term has little effect on China's banking, but in the long run the new regulatory standards for China's banking sector in capital and liquidity management can not be ignored. This paper selected financial data from 8 listed banks in China and make empirical analysis on the relationship between intermediary business income and banking capital utilization efficiency, pointed out that China should continue to deepen the banking risk management, improving bank governance, actively responding to regulatory and completing the strategic transformation to enhance the core competitiveness to cope with global competition.