Risk Study Of China’s Commercial Banks Non-standard Financial Products

Development of Non-standard financial products of China’s commercial banking business began in 2008.After several years of development, size and speed of development of Non-standard financial products have been improved rapidly. Non-standard financial products business as one of China’s commercial banks innovation, to a certain extent, promote China’s financial markets and motivate the commercial banks incentive. But it also exposed the many risks and problems in the development process.In this paper, the risk of non-standard financial products precautions of China’s commercial banks is the objective of the study, the study found that China’s non-standard financial products include inside and outside the presence of two major risks. Internal risk of non-standard financial products include:first, non-standard financial products are not included in the deposit-loan ratio assessment, increasing commercial banks operating leverage and business risk surge; and second, because of information asymmetry, leading to enterprise monitoring and lack of supervision of capital flows; third, maturity mismatch, resulting in the presence of non-standard business interbank business illegal questioned. At the same time, there are some risks in non-standard financial products overseas development, which include that first, non-standard financial products investment industry is too concentrated, higher concentration risk; second, non-standard financial products high liquidity management requirements, increasing business. Third, Rigid payment is expected to increase the credit risk of financial institutions; fourth bank liquidity risk, higher risk-free income level, inhibiting allocation of financial resources.On the basis of China’s commercial banks non-standard financial product poses a risk analysis, this paper is focusing on non-standard financial products to prevent the risk of internal and external measures, which include internal policies:First, improve the reporting system of commercial banks, the establishment of credit authorization system, hierarchical audit at the core; and second, to optimize the organizational structure of commercial banks, build mutual restraint, mutually independent management model; third, clear rights and responsibilities of credit positions, enhance staff professional training, enhance the operational capacity; fourth, non-optimized investment direction indicator of financial products, strengthen the supervision of finance companies. External policy, the main specific measures include:first, to build efficient and reasonable banking regulatory system, promote institutional innovation; second, the establishment and improvement of non-standard financial products and risk information disclosure system isolation system; and third, to strengthen the non- Legal Supervision standard financial products, non-standard financial products clogging risk vulnerabilities.Optimization of China’s commercial banks have non-standard financial products risk prevention measures through this study will help provide guidance for all commercial banks to develop non-standard financial products business. Meanwhile, this paper also has shortcomings, mainly for not doing a more detailed analysis of the operational risks of non-standard financial products, expect more in-depth research in future studies.