Research On The Impact Of Risk Management Of Commercial Banks To Value Creation

With the vigorous development of China’s financial market, the number of commercial banks in China is increasing in recent years. Various finance emerging format germination. As the main part of the financial industry, banks are important to China’s sustained and healthy economic development and continuous improvement of people’s living standards.It can not be ignored. Reform of commercial banks to bring more development opportunities for banks.However, banks also faces pressure from overseas and domestic. Commercial banks are faced with great challenge and competition.Because that there is a larger gap exist in the risk management level of commercial bank and the international advanced banks,it is obligatory to improve the value of capacity, profitability and competitiveness. In recent years, China’s commercial banks are faced more and more risks.Risk events occur frequently.in the context of that the opportunities and challenges exist side by side, how to avoid the risk,reduce losses and improve the value through the right procedures and measure is particularly important. It is necessary to put forward how to deal with risks and value creation based on the theoretical and empirical analysis of the impact of China’s commercial banks’risk management to value creation,.This paper is divided into five parts.The first part is introduction.It mainly introduces the background, significance and methods of research, summed up the main points of the scholars at home and abroad. The second part is a part of fundamental analysis, on the basis of the introduction MM theory, management theory, risk management theory and value chain theory to explain the history and development of related concepts as well as risk management of commercial banks risk management and value creation.The paper gives the descriptive statistics of the current situation of risk management of China’s commercial banks in the third part.It summed up the mechanism of risk management to value creation through the elaboration of the bank economic capital management and the relationship between capital allocation and risk management. The fourth part is the empirical analysis.It through the sample data selection index selection and variable, and establish the regression model, using SPSS software on the key factors affecting the correlation study. The empirical results show that, the capital adequacy ratio has a negative impact on bank value creation capability.The provision coverage ratio and debt ratio listed on bank value creation positive effects.The rate of bad loans and the value creation ability has no significant correlation. The fifth part summarizes the research conclusion, and put forward some policy suggestions, and prospects the future research direction.The characteristics and innovation of this paper is that put forward that the focus of the proposed banking reform and construction is the bank’s overall risk management, through the analysis of the importance and the relationship between risk management and value management,based on MM theory, the theory of strategic management, risk management theory and the theory of value creation. The existing research results in risk management or value creation, and the empirical analysis of the influence of the former on the latter is rare. This paper is established to study the risk management of value creation by the impact model.It design variables based on three aspects of bank’s credit risk, market risk and liquidity risk. This paper analysis the current situation of risk management of commercial bank by collecting the data.The risk management of commercial banks the progress achieved and existed many problems,and puts forward the measures and suggestions to improve the bank risk management and value creation ability.In order to help and guide banks to improve the ability of value creation.