China's Commercial Banks' Risk Management Problems And Countermeasures

A fresh position of the commercial Banks after the Based III Accord published,its function is no longer the original the simple financial service or the credit intermediary, but risk management. Therefore, risk management become the core functions and the basic task of modern commercial Banks.Citibank CEO Walter·Wriston also said that the banker is mainly engaged in the occupation is business risk.In terms of microscopic,the starting point of the commercial bank risk management should be to avoid or reduce losses,in order to ensure business activities of commercial Banks to go smoothly,thus the disposal and control risk is particularly important; In terms of macroscopic, to ensure the normal operation of the whole commercial bank system is the starting point of the commercial bank risk management, and ensure the stability of the financial order, ultimately promote the healthy and sustainable development of national economy,which requires a single commercial bank guarantee stable operation of its own,so that to prevent the generation of Domino effect of individual commercial bank failures.One of the main features of the Commercial Bank of our country is long-term belongs to the state,under the protection of running mode make the lack of risk awareness and risk management practice and experience deficient phenomenon.There is a larger gap between western commercial banks and Chinese commercial banks about risk management consciousness and the risk management level,so we have a greater level of improvement in future.In this context,analysis of the current situation of risk management of commercial banks in China besides the existing problems,at the same time, draw lessons from the successful experience of the international commercial bank risk management,to put forward the methods and measures to improve the level of risk management has become the important,urgent and realistic issue faced by our country commercial banks.Starting in the1980s,the world’s macroeconomic and financial market volatility change frequently and the instability of a single commercial bank itself operation was increased accompanied by the development of globalization and financial liberalization, lead to banking risks becoming global,diverse,complex changes of direction.As a high-risk industry and engaged in the operation of monetary business,it is necessary to well control the potential risk of task for commercial banks to realize the sustainable development,it will affects the country’s financial and economic and social coordination and so on.In this context,based on accessing to the relevant literature and data about risk management of domestic and foreign commercial banks,combined with some theories and methods about the management of commercial banks, corporate governance, financial science,analysis of existing problems and reasons about the risk management of commercial banks in China, and describes the status of the International Commercial Bank (USA,Germany, Singapore) Risk Management in order to learn the successful experience of its risk management.Based on the existed problems in risk management for China’s commercial banks and learning international effective risk management experience,given the countermeasures to improve the risk management of commercial banks in China.