The Research Of Financial Risk Assessment On China’s Listed Commercialbanks

Market-oriented interest rate reform will make impact on the policyinterest protection which the China banking industry has long been dependenton; commercial banks will face policy adjustments and more stringentregulatory and other uncertainty factors. In this paper, evaluate the risk ofcommercial bank combined with the actual situation in China from financialperspective, which has practical significance for the implementation ofregulatory supervision from the macro and micro levels.On the basis of the commercial bank risk management theory，analyzethe special effects of China’s financial risk mechanism to establish an indexsystem to comprehensively evaluate financial risk of commercial banks fromthe five aspects: Profitability, capital adequacy, asset security risk, liquidityrisk and interest rate risk and use the factor analysis method to calculate thecomposite score to evaluate and comparatively analyze the banks. Getdiversity factors by the mean value test to construct a logistic regressionmodel to establish risk warning based on the results of discriminant. Theresults show that: the capital and interest rate risk is the most important factorto affect China’s commercial banks’ financial risk. All listed commercialbanks existed interest rate sensitivity gap, facing the risk of interest rateadjustment. On the whole assets risks of the five state-owned commercial banks were higher than city commercial banks and joint-stock commercialbanks. There were significant differences in profitability, capital adequacy,asset security risk, liquidity risk and interest rate risk between the two samples.Use the indicators to construct a logistic regression model which distinguishthe financial risk warning of listed commercial banks. In view of this proposalthe advices: First, continue to improve the bank’s capital management. Second,implement classification regulation based on the risk profile of the differentmechanism. In the end implement the mode that combining micro and macroprudential supervision to guard against systemic risk.