Study Commercial Bank’s Risk Management Based On Corporate Governance’s Perspective

In the1990s, the world banking crisis frequently burst out. In recent years, the bank riskcaused serious consequences for the economy and society. In2007The global financial crisis istriggered by America sub loan which caused the global economic recession. The bankingsystem risk not only threatens the stability of the financial system, but also affect the economicdevelopment and social stability. After the crisis, the theory circle and practice circle began toresearch on the root of the financial crisis, focusing on the study of bank corporate governanceproblem.International financial institutions carry out a series of case studies,come toconclusion:weak governance structure of commercial bank is the root that cause bankrisk.From a domestic perspective, in1990s, China has promulgated a series of commercialbank financial legal and regulatory measures, provides a good external governanceenvironment for commercial banks.But compared with the world advanced banks, there aremany problems in the ownership structure, board governance, incentive mechanism, externalsupervision and bank mergers and acquisitions,which have serious impact on the level of riskof commercial bank.Therefore, from corporate governance’s perspective,to research ourcommercial bank’s risk control has practical significance.This paper summarizes the results on the basis of existing research, drawing on Westerncorporate governance theory and analysis tools,in the context of of China’s commercialbanks’reform,using a variety of theoretical and empirical research methods,around the theme ofthe relationship between corporate governance and risk control of commercial banks, bankgovernance risks as the logical starting point for research and research-based commercial bankrisk control.Multiple linear regression model was analyzed by measurement tools, to give thecorresponding conclusions and made several recommendations to improve China’s commercialbank’s capabilitie of risk controls.From an academic perspective, bank governance theory is based on the theory ofcorporate governance generated, are more innovative, cutting-edge fields.Theoretically, bankgovernance has its own peculiarities, so different from the general theory of bank governancecorporate governance theory.Set a series of hypothetical propositions from an empirical pointof view, select the variable institute used herein.Establish an empirical model based on theassumption, analyzed by measurement software, draw the relationship between corporategovernance and risk control of commercial banks.Commercial bank governance provedinfluential on risk control.Meanwhile, China’s commercial bank learn from the experience ofthe current world’s leading bank’s governance and propose countermeasures.