The Analysis On Financial Risk Control Of CH Commercial Bank

In recent years, with the development of commercial banks both in China and abroad, the reform of commercial banks have been deepened, and the market has become more competitive, which not only demands the banks that aim to improve the economic benefit and increase the capital, but also a wholesome financial risk management system to withstand the increasingly diversified financial risk and strengthen the control of banks’financial risk. CH Commercial Bank has developed well among city commercial banks in China, however, due to the small size, single and insufficient financial risk control methods, the indicators set of financial risk control is less scientific and effective, resulting in realistic and potential financial risk in the process of management. Therefore, CH Commercial Bank has to enhance the ability of financial risk management to meet management activities.This thesis is based on domestic and overseas theory and practice of financial risk control to analyze the financial risk control of CH Commercial Bank through on-the-spot investigation and experts’opinions. First of all, it states the theory and current situation of financial risk control, gives a brief introduction about the research status at home and abroad and related basic content. Secondly, it analyzes the present financial status of CH Commercial Bank, and financial targets have been divided into five aspects including the capital risk, risk of asset quality, profitability risk, liquidity risk,management level and the financial risk,. Thirdly, four problems including unreasonable financial structure, large local equity ratio, the defect of the credit evaluation index and severe interest management indicate macro and micro reasons. Finally, five effective measures consisting of optimizing the financial structure, rationalizing equity structure, promoting interest rate risk management, improving customer credit rating information management system and establishing comprehensive risk management system are proposed to optimize the financial risk control of CH Commercial Bank.