Research On Evaluation Of Comprehensive Risk Management Of Chinese Commercial Banks

For a country’s economic,the commercial banks occupy the absolute core positionin the financial system.The bank’s management situation affects the development of thenational economy and people’s daily life directly.At the same time,banks have beenclosely linked with the risk since it is born.The effective risk management can bringbanks benefits.But if the risk management is not functioning good,it will cause greatharm,even result in the economic crisis.The problem will directly affect the normaloperation of the economy and social stability.In recent decades, such cases occurredmany times in abroad.There have been many large banks collapsed for thisreason.Based on this situation,study on risk management has always been a key subjectfor domestic and foreign banks.Since China joined the WTO,our financial market is gradually open to theinternational.This brings the benefits and opportunities.At the same time it alsoincreased the competition between domestic and foreign banks.It makes the domesticbanks facing increasingly complex risks.China started late in the research of riskmanagement.Either the idea or method,there is a wide gap between domestic andforeign advanced banks at present.In this regard,we need to strengthen thecomprehensive study of risk management.It includes the construction of a reasonableevaluation index system.And choose model of scientific methods to evaluate it.So wecan analysis the basic risk status of our country’s commercial banks in currenttimes.Then we point out that the main risks they are facing,and gives advicein in viewof the key.These are what the paper will research.First this paper will expounds the main content of the theory of commercial bankrisk and risk management.It summarizes the research findings of risk from domestic andforeign experts.And we focus on the introduction of the Basel New CapitalAccord,which is the theoretical guidance of China’s banking riskmanagement.Next,according to the provisions of Basel agreement and documents ofChina Banking Regulatory Commission,we will establish a risk evaluation indexsystem.Then use the comprehensive weight method to calculate the weight of everyindex.And we can learn the important risks faced by Chinese banks according to theweight value.Finally, use the projection pursuit model to evaluate the level of riskmanagement of ten domestic banks in2011.According to the results,put forwardpersonal views and suggestions to the risk management of commercial banks in China.