Case Study On The Bank Of China "Youhuitong" Reputation Risk Events

Reputation as a kind of high added value of intangible assets more and more importance by all kinds of enterprises and consumers. Good reputation can help enterprises to generate huge economic benefits. Commercial Banks based on earnings for the purpose, to raise funds in a variety of financial liabilities, a variety of financial assets as the object of management, has the credit creation function of financial institutions. In this sense, commercial Banks should attach importance to its own reputation. According to the China banking regulatory commission on August 25,2009, issued by the commercial bank’s reputation risk management guidelines "mentioned in article 2:these guidelines, the term" reputation risk "means by the commercial bank management, management and other ACTS or external events lead to negative stakeholders on commercial bank risk. Reputation event is direct commercial bank’s reputation risk related activities or events. Thus, in the contemporary pays attention to the environment of the brand competition, the reputation of the commercial bank risk management is extremely important. Internationally, the Basel committee issued in September 1997, the core principle of effective banking supervision, reputation risk as one of the eight risks of commercial Banks must properly deal with it. In January 2009, the Basel Committee is clear in the core capital agreement for advice to reputation risk as the second pillar. In most developed countries, national regulators will reputation risk management as an important part of commercial bank risk management system. Moreover, reputation risk management in foreign countries has a relatively mature system and experience. In contrast, domestic, from the power of the academic practice of commercial Banks and other institutions is not enough in-depth, theory system is not perfect, not to mention the reputation of the related risk management experience. From abroad, however, the development course and the experience and the domestic commercial Banks increasingly changing market environment, commercial Banks and other financial institutions, it is necessary to increase the reputation risk management to the strategic position of risk management, so as to improve the ability to resist risks of commercial Banks.This paper adopts the approach of combination of theory and practical analysis.First, introduce the commercial bank risk management of the relevant background and significance, research literature at home and abroad and the research content of this paper, the method and train of thought. Secondly, on the connotation of the commercial Banks to reputation risk, characteristics and influencing factors of commercial Banks to reputation risk is introduced and analyzed. Then, a typical case is used for analysis. This paper by the bank of China "Youhuitong" reputation risk events as a case, through the review of the bank of China "Youhuitong" reputation risk events process, analyzing the impact of reputation risk after the incident, and in the process of the bank of China is how to successfully resolve reputation risk crisis, what is the effective measures are taken, and analyzes the corresponding summary. The successful case also provides a good reference and model for domestic commercial Banks. Finally, an overall analysis of the status quo of Chinese commercial Banks to reputation risk management, combining with the bank of China successfully overcome the experience and lessons of "Youhuitong" reputation risk events, and for the Chinese commercial bank’s reputation risk management general policy Suggestions are put forward. Including strict reputation risk of commercial bank’s internal management, establish and perfect the external reputation risk in commercial bank management system and improve the regulatory system of commercial Banks, three aspects so as to the commercial bank of China in the future competition in the international market to provide some theoretical support and practical guidance.