The Financial Structure And Risk Control Of Medium-sized Commercial Banks In China

Risk management, control and prevention are problems which the banksand other financial institutions always concern. Especially during theUnited States sub-loan crisis of2007, the bank’s risk control problemsquickly gained wide attention. In China the national joint-stockcommercial banks belongs to a particular group. Commercial banks arerepresentative, with their medium bank scale in China. They are the mainforce of small and medium-sized commercial banks, and also occupy acertain market share. With the rapid expansion, the commercial banks havevery positive effects on China’s economic and social development.Compared with the large state-owned banks, the capital and managementfoundation of this group of commercial banks are weak, and their abilityof shielding against risks is poor. In order to predict and timely findthis bank group’s possible financial risks, this thesis takes thenational joint-stock commercial bank branch where the present authorworks as the research object to offer targeted and effective measures toprevent risks. Based on the financial structure, the main analysis subjectis the national joint-stock commercial banks’ financial risk controlproblem, providing references for bank management.Based on the analysis of the research object, this thesis carries outthe contrast analysis of such a specific group---the national joint-stockcommercial banks, and explores the relationship between the financialstructure and the financial risk of certain banks. In accordance with theregulatory requirements and the developing characteristics of thenational joint-stock commercial banks, by using the evaluation mechanismsof foreign financial risk control for reference, this thesis selects aset of financial indexes for specific range of banks, determines theweight and categorizes the evaluation mechanisms in order to establisha set of financial risk evaluation system based on financial indexes.By the application of the financial risk evaluation system, it ispossible to clearly present the potential risk issues existing in theresearch object as well as the difference between the research object andthe industry average, which has great value in taking timely and effectivemeasures to solve problems as well as risk averse.