Research On Securities Investment Risk Of Chinese Commercial Bank

The commercial banks from establishing the present, risk management has been one of the problem of the management. The early commercial bank credit risk management and management tools are relatively simple. Since the1970s, with the financial innovations continue to emerge, the business of commercial banks gradually expand and then gradually relaxed financial regulation, the emerging wave of financial liberalization, commercial banks are facing an increasingly complex competitive environment, commercial banks and the risk of the growing trend of diversification. All kinds of new risks are constantly emerging, which is the impact of a growing trend. From1991, Japan’s Fuji Bank in the stock trading loss of43billion, to Japan Dai-Ichi Kangyo Bank in December1991, a loss of3billion in foreign exchange transactions; from the British Barings Bank in1995February with a loss of＄1.3billion in stock index futures in September1995to Japan and Japan banks in the U.S. bond trading losses of＄1.1billion; fromthe National Westminster soil Bank financial markets Group in March1997in options trading loss of￡140million to Australia in January2004, the bank lost$140million in options trading, banking investmentlosses are not infrequent.2008U.S. subprime mortgage crisis hit in the banking sector, leading to a bad debt ratio of commercial banks increased significantly, a great impact on the profitability and capital adequacy ratio ofcommercial banks. Provisions in the Basel II capital adequacy ratio of commercial banks to maintain more than8%, of which core capital adequacy ratio above4%. All assets of China’s commercial banks, the loan does not have the liquidity and risk, securities with greater mobility, higher security, better returns and tax benefits, has become second only to the second-largest asset of the loan. Commercial banks has its own particularity, management’s goal is to make the minimum risk to maximize profits, but also to meet the safety, liquidity and profitability of the three unified. As theproportion of investment in fixed income securities assets of China’s commercial banks are increasing, the importance of the position of the securities to invest in the business of commercial banking assets rising, it will become the assets of the business of commercial banks the most flexibility and initiative Therefore, both very urgent to have practical significance of the research topic of securities assets.In the securities investment management, risk management is most important. Contemporary financial globalization, financial innovations are emerging and increasingly complex financial risks, risk management is good or bad a direct impact on the success or failure of investments in securities. This article start with the definition of securities, characteristics, classification, and securities market analysis start with the object of this paper to form a clear understanding of the practical significance of China’s financial markets. Then a brief overview of the risk of investment in securities, as well as the current situation of commercial banks’ investments in securities, to clear securities assets in the assets of commercial banks occupy an important position, and are becoming increasinglyimportant. Next, we analyzed the main methods of measuring risk, which leads to the VaR-GARCH model. In this paper, we passed on the Government Bond Index were analyzed to arrive at the commercial banks there are certain risks in investment in securities. Finally, we propose a strategy to guard against the risk of investments in securities...