| In the late 20th century, the trend of liberalization and globalization in the financial industry was sweeping the world, under which background, more and more banks began to operate overseas. But with the rapid development of business in the abroad, the risks of overseas operations of China’s banking industry is gradually becoming prominent. How to have a complete and systematic assessment of the risks? How to make effective suggestions to control the risks? The resolution of these problems is of great significance to the commercial banks of our country, especially to the healthy and orderly development of overseas business of them.This paper starts with the review of relevant literature at home and abroad in three aspects, namely the theoretical basis of transnational operation, the motivation of doing business abroad, the assessment methods of the operation risks. This paper then analyzes the necessity and the status quo of the overseas operation of the commercial banks. In this chapter, this paper also carries out a detailed introduction of two expansion modes——new investment and Cross-border M & A. In the next chapter, the paper has a specific analysis and elaboration on the definition,characteristics and types of overseas business risk. In Chapter 5,the paper builds overseas business risk evaluation model with Fuzzy AHP Comprehensive Evaluation method. This model includes 9 first-grade indexes(including the political risk, economic risk, financial risk, exchange rate risk, operational risk, profitability risk, capital risk, asset risk, liquidity)and 37 second-grade indexes, all of which are put into two types----the environmental risks and the oneself risks. Then the paper selects Bank of China (Hong Kong) as an example to verify whether the model is practical and scientific or not. Finally, some effective suggestions are given to how to control the risks of the transnational banks according to the index systems structured by this paper. |
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