Study On Financial Risk Warning System In The KITA Branch Of Jining Bank

With China’s economic development and the reform of financial institutions, local financial environment is becoming increasingly complex. In recent years, local commercial banks have developed rapidly and they are facing with more serious financial risk as the interest rate market have deepened gradually. This will exert a great influence on KITA bank as it has just started its business for a short time. Therefore, how to warn and prevent the financial risk has became an urgent problem to local small and medium banks.Regarding branch KITA of Jining Bank as the study object and the financial environment of KITA county as the research point, this paper intends to establish an applicable prediction system for KITA branch with considering the reality of KITA county.At first this paper review the basic theory of local financial risk warning, and propose the common financial risk warning methods called index system method and model scoring method. Then it elaborates the current situation and problems of branch KITA of Jining Bank risk warning. On the basis of the basic theory of financial risk warning, this paper selects some indicators to evaluate the situation of the financial environment. The index system presents the level of regional economic development, the financial resources and social credit put a significant impact on regional financial environment. As KITA branch serve for medium and small enterprises mainly, the bank’s financial risk is from the credit risk of SMEs. Though quantifying a series of non-financial indicators and financial indicators, this paper establish a linear model to study the influence factor of credit risk by SPSS software. The linear regression results tell the credit risk is affected by several factors. At last, by means of the theory review and empirical analysis of data, this paper presents many safeguards related risk warning with considering the bank’s internal and external environment.