A Study On Risk Management Of Commercial Banks’Discount Bills Business

The business volume of the bills discounting business has been doubled since2000,it has developed rapidly in China. The franchise and scale operation of bill business have brought substantial income for the banking institutions, bills discounting business tend to be the profit growth point and major business which commercial banks are competing fiercely for.However, with the rapid development of bill discounting business, risk problems followed in the meantime. There are credit expansion and credit bubble in the market, various non-rational competitive behavior can not be abandon, it turns out to be wak internal management and backward risk system. All of these, especially the criminal collusion in the fraud bills and notes on the paper by packaging broker have caused huge risks and losses to the commercial banks. To further investigate the sustainable development of bill discounting business, we propose the main problems and risk prevention measures in the bill discounting, under the consideration of the work operations of banking discounting.We sort out the basic theory of bills discounting, based on the combination of the actual business case, study the business rules and features of bill discounting risk in commercial bank, analysis the main risks and causes of bill discounting business at this stage. In the end of this paper, we propose targeted risk management measures, in order to provide a useful reference for healthy and rapid development of commercial banks bills discounting business.The main research works in this thesis are as follows:First of all, introduce the contents of the bill discounting business based on the theory of commercial banking bills discounting, describe the characteristics of the discount business, card the relative risk management theory, in order to provide theoretical basis for analyzing the cause of bill discounting business risks.Then, under the collection of relative data, together with a variety of representative case of bill discounting, we discriminate and define the main risks of the commercial bank bill discount business. In this paper, we sort them into credit risk, interest rate risk, liquidity risk and internal management and operational risk.We find that with the rapid development of commercial bank bill discount business, the lag of risks control means cause a huge loss to commercial banks.Finally, the corresponding risk management measures are addressed based on analyzing the reason of the risk. The different risk management strategies are designed for the different sources and features of the credit risk, interest rate risk, liquidity risk and internal management and operational risk, and make the bill discounting business of commercial banks risk management more operational.This thesis carried out the innovation as follow:(1)Introduce the commercial banks bills discounting in detail from the perspective of the actual operation of it. Classify the business risk during the process by analyzing the typical relevant case of bills discounting, and reveal the causes of the bills discounting risks.(2)Under the consideration of the work operations of banking discounting, the different risk management strategies are designed for the different sources and features of the risk, make the bill discounting business of commercial banks risk management more feasible.