The Study On Risk From The Outsources Of Services In Back-up Businesses For Banks

Recent years,the global financial service outsourcing is rapidly developing. Outsourcing strategy has now become an important choice for banks to enhance their competitive strength. The scale of Banking services outsourcing is huge and also has a great potential to develop.Take the situation of the world’s large financial services outsourcing business in the first half of2010for example,Banking services outsourcing proportion is as high as65%.At the same time the services outsourcing has brought great risks to the overall strategy and operation of the bank.But fact is,that developed countries and international organizations attach great importance to the supervision of the banking services outsourcing. However the construction of our country’s supervision system lags far behind. The related researches by academic circles at home and abroad are obvious not enough.In order to further study the banking service outsourcing supplier’s risk, this article firstly analyze the operation mechanism of the banking services outsourcing and different outsourcing models, summarizes the characteristics of banking services outsourcing,analyze the places where the service outsourcing risks come from in the information asymmetry and agency problem. Six types important risks have been summed up.On the basis that Banks and regulators assessing supplier’s risk, a quantitative analysis has been made through comparing the outsourcing risk matrix method,a sequence of the importance of banking service outsourcing risk has been ranked out by using the Borda sequence value method,the risk caused by supplier has been further identified as the key risks affecting bank service outsourcing,in order to make a more accurate quantitative analysis,the risks caused by suppliers can be classified to19types.The risk evaluation index system of the suppliers can be build by fuzzy evaluation method,which will offer a scientific basis for quantitative analysis of the supplier risk and regulation. Furthermore, this article analyzed the risk dynamics and the necessity of banking service outsourcing suppliers by using the theory of financial regulation, on such a basis,i made a theory analysis that the management roles played by different regulatory bodies, and analyzed the necessity of government regulation,in the condition of no regulation, there is risk of profit-driven in suppliers, leading to market failure and bank quit out of outsourcing market; then suppliers are monitored by consumers, there is a large number of consumers and they are likely do not to prefer to sue suppliers. It is difficult for them to play a regulatory role.If the banks themselves regulate suppliers,it only reduce the probability of risk, the supervision cost is too high.If government regulates, through increasing the intensity of punishment, can reduce the expectation of supplier, which will be helpful to the stable development of service outsourcing market. Therefore, the study shows that government regulation is legitimate, reasonable and necessary, which is an important approach to solve supplier risk.Lastly, through the above analysis, the banking services outsourcing problems related the government regulation system has been analyzed, and suggestions are worked out:(1) This thesis put forward the government regulators should use on-site inspection method to regulate and supervise banking service outsourcing.(2) The costs and benefits of government supervision are different, the supervision mode depends on the political system, on the economic development level, and on the structure of the financial sector in a given country or region.(3) According to theoretical analysis,using the experience of relevant countries and international organizations to regulatory, suggestions for the development of the government regulation system in the banking service outsourcing have been recommended.