A Study On Risk Information Disclosure Of Commercial Banks

Financial innovation is the impetus and source for the development of commercial banks, but it may also bring great risk. The risk information disclosure published sufficiently and timely would enable market participants to make rational decisions and thus constrain the risk behavior of commercial banks. One of the reasons behind the outbreak of financial crisis in 2008 is that the risk disclosure can't catch the pace of innovation of risk management, which highlights the importance of risk information disclosure. However, China commercial banks did not pay sufficient attention to risk information disclosure. Although regulators have established some risk information disclosure criterions in reference to international advanced experience, disparity still exists to some extent. Therefore, the risk information disclosure of Chinese commercial banks is still inadequate both in system or practice, which is obviously detrimental to their ability to resist financial risks and enhancement of international competitiveness.Based on the background mentioned above, this paper researches on the risk information disclosure of China commercial banks in detail, and they are fully represented in the following six chapters:The first chapter is the introduction section. Background and significance of the research, research contents, methods and innovations are discussed in this part.The second chapter is a literature review of commercial banks'risk information disclosure. Firstly, based on the definition about the risk of commercial bank and its'categories, discussed the relevant literature of risk disclosure and which in commercial banks in progression.The third chapter is a theoretical foundation of risk information disclosure of commercial banks, which are the theories of information asymmetry and market discipline. According to the asymmetric information theory, regulators should strengthen supervision while for the market constraints theory, commercial banks should disclose risk information promptly.The fourth chapter is the normative research in risk information disclosure of commercial banks. By going over risk information disclosure requirements of commercial bank made by international regulatory authorities and domestic regulatory authorities respectively, summarize the provisions of content, method and location of commercial banks'risk disclosure information both in the domestic and foreign countries, to achieve the purpose of promoting the development of national systems by using international experience.The fifth chapter is the empirical research in risk disclosure of commercial banks. On the basis of normative research, sort out some detailed risk disclosure information requirements of domestic commercial banks and use it as standard, grade the 2010 annual report of 16 commercial banks listed in Shanghai and Shenzhen Stock Exchange market for the extent of risk disclosure by the method of disclosure index, by establishing two indicators of risk information disclosure which is compliance risk information disclosure index and voluntary risk disclosure ratio observing the content, method, location and overall status about risk information disclosure of listed commercial bank, from all things above to arrive at the practical experience China commercial banks has obtained shortcomings which are still existed .The final chapter is the conclusion. For the shortcomings which find out in the normative and empirical research, come up with specific and feasible countermeasures which may help optimize the disclosure of risk information.