An Empirical Study Of Financial Risk Assessment On Inner Mongolia Village Banks

Setting up a Village bank is to fill the rural financial blank, but as a new thing, there are some shortcomings in its risk management no matter theory research or actual practice.The thesis bases on bank’s risk management theory of village bank and commercial bank, explaining the definition and classification of bank’s financial risk. In order to evaluate village bank’s financial risk, the thesis divides bank’s financial risk into five aspects:capital risk, asset quality risk, liquidity risk, profitability risk and management risk. Then a bank’s financial risk model of fuzzy comprehensive evaluation is established. Finally, the thesis selects18village banks in ten union cities of Inner Mongolia region as the evaluation objects, according to its financial data by the end of2011evaluates these18village banks’financial risk through using model of fuzzy comprehensive evaluation.Through risk evaluation and results analysis, the conclusions are as follows. First, the financial risk of village bank in Inner Mongolia region is more average, not so much influenced by the local economic development.Second, Inner Mongolia village bank’s financial risk value generally stays at a low level, its show that the management of village bank is good. Third, the scale of village bank is bigger, the finance risk is smaller.The thesis takes bank’s financial risk as the cut-in point, builds the village bank’s financial risk model of fuzzy comprehensive evaluation and analyzes18village banks of Inner Mongolia region. The research has a certain reference value for the risk management of banks.