The Research On Risk Management Of Bank Of China Ningbo Branch Involve In Investment Business

For financial industry, the globalization development of mixed operation system is theintrinsic requirement of adapting to the changes of international economic situation, achievingprofit maximization and enhancing anti-risk capability. For China’s commercial banks, selectiveparticipation in investment banking is strategic choice and inevitable tendency to conform to thedevelopment of global economic environment. However, in practice, China’s commercial banksare limited by the immature financial macro-environment and the internal imperfect operatingmanagement and risk control system, which increases systematic and non-systematic risk ofcarrying out investment banking for commercial banks, and thus poses a threat to the stabledevelopment of domestic financial system. Therefore, the exploration of the risk control problemof commercial banks’ investment banking has a very important practical significance.The author conducts this study on basis of economics, finance, management, law and otherrelated theories, starting from the current situation that China’s commercial banks has carried outinvestment banking, takes working practice into consideration, conducts classification analysis onthe types and causes of systematic and non-systematic risk of China’s commercial banks carryingout investment banking. Based on China’s current financial market development status, the authorlearns from the experience of developed countries in time of financial crisis, conducts a study onthe risk management problems related to the practice that Ningbo Branch of the Bank of Chinacarries out investment banking. The author analyzes in detail the advanced experience of Westerninvestment banks in the aspect of risk management, proposes to overall risk control ability ofcommercial banks from two levels: one is to improve the China’s exterior regulatory system, theother is to strengthen relative internal control measures of Ningbo Branch, in order to achieve “riskis controllable and becomes benefit”. Based on this, the author suggests that, Ningbo Branch ofBank of China should raise the risk control awareness of investment banks’ Off-Balance SheetActivities, reinforce authorization management and business processes standardizationconstruction, strictly implement customer admission and investment issuing management,develops collaborative capacity, strengthen post-loan management so as to decrease risk control cost and increase benefit. Meanwhile, our country should actively control market admittance,enhance the cooperation of regulatory authorities, and improve data gathering and monitoring workof investment banks’ off-balance sheet financing businesses, which are powerful external controlmeans which help Ningbo Branch of Bank of China achieve that the risk of investment bankinglevels off. Only through both internal management and external control, can the risk of commercialbanks carrying out investment banking be controlled, and thus the competitiveness of the Bank ofChina Ningbo Branch increases.