Research On The Risk Causes And Prevention Of Personal Financial Services Market Of Commercial Bank In China

Personal Financial Services in China emerged in the 1990s.After decades of development, personal financial services market has become the largest asset management industry, which is has the most closely contact with residents and enterprises. Meanwhile, the contact between it and the substantial economy is increasingly strengthened. In 2015, economic development is serious in our country, China’s economy enters the new normal state, economic growth change from high speed to middle-high speed, the economic growth rate slowly fell from more than 10%to 6.9%. In the economic situation facing downward pressure, as China’s interest rate market continues to advance, depending on the source of deposits and loan profits, China’s commercial banking industry is also facing great challenges. Relying on the commercial bank, personal financial services of commercial banks will face new market risk, in particular interest rate risk, exchange rate risk, equity price risk, operational risk, liquidity risk, credit risk, compliance risk. Characteristics and complexity of the underlying causes of risk in the new period of China’s economic transformation, these types of risk also need cited concern. Reasons behind these risks on the macro level, are the level and health of economic development, interest rate and exchange rate market-oriented process in China, the degree of perfection of financial market environment, regulatory standards, personal financial services market and legal system. On the bank level, in particular the bank’s internal risk management and control, the quality of managers, financial product innovation, marketing mode. Individual investors also need to deepen their understanding of personal financial services market risk and improve risk awareness. For these reasons, proper measures to prevent risk of personal financial services market for the protection of individual investors, restructuring and development of commercial banks and good run of China’s macroeconomic are far-reaching.Since 2013, with the rapid development of internet financial business, all kinds of financial products are in the market, the good and the bad are all intermingled, in which commercial banks took the largest proportion of the financial product market. It has closely relationship with the residents and also will face more complex risks in new environment. This paper begins with an overview of personal financial services and related financial products, combing the development course of China’s commercial banks personal financial services market, summarizes the characteristics and development trend of China’s commercial banks personal financial services market. Combined with domestic and foreign scholars, from a macro level, the bank level, individual investor level, this paper pointed out the causes and the underlying risk categories of personal financial services market. This article will select the default of Hua Xia Bank’s wealth management products in 2012 for risk analysis, and then the corresponding risk prevention measures are proposed to promote the healthy development of personal financial services market of commercial bank in China.