Research On Banks’ Risks: From The Perspective Of Currency Mismatch

Currency mismatch is due to an economic entities use different currencies in payment activities, resulting in a different currency structure of assets and liabilities, cause the net worth or net income sensitivity to exchange rate fluctuations. From the current overall situation of China’s banking system, currency mismatch is widespread, expressed as a huge asset positions in foreign currencies are facing the pressure of appreciation of the RMB exchange rate.Based on currency mismatch perspective, combining normative and empirical analysis method analyzes the direct currency mismatch characteristics of China’s commercial banks factors of indirect currency mismatch and the transfer mechanisms of currency mismatch risk. Through empirical inspection, verification of exchange rate fluctuations through the commercial banks’ balance sheet exposure to currency mismatch risk of loss arising bank’s net value.The third part focuses on the business risks of commercial banks, using mathematical models to explain the direct and indirect impact of currency mismatches how commercial banks through the net balance sheet channel. In the fourth chapter of this paper, has a lot of data analyze, from the perspective of stocks and flows, China’s commercial banks are currently facing a serious currency mismatch, showing huge net foreign asset exposure; This article creates a regression model for quantitative analysis by comparing different combinations of variables regression to verify the impact of exchange rate fluctuations on net commercial bank is passed through the balance sheet currency mismatch channels. At the end of this paper we give some currency mismatch control policy recommendations for commercial banks.