Measurement And Evaluation Of Risk Indicators Of Commercial Banks In China

Banking industry in China has stronger requirement for risk supervision as the economy in China have developed and expanded gradually since the reform and opening up of China.In order to ensure the long-term stability of financial market and the sustainable economic development,the supervisory authority proposed its own thought and framework regarding to the supervision agreement of banking industry in China based on the national situation of China and Basel ?,which aims to combine micro-prudential supervision with macro-prudential supervision organically,and proposes four supervision requirements including capital adequacy ratio,leverage ratio,loan loss ratio and liquidity.Since the China Banking Regulatory Commission(CBRC)released the new supervision agreement in 2011 till now,the commercial banks in China have implemented the new supervision agreement for three years already,and the performance of risks supervision in accordance with the new agreement becomes obvious initially.At this point,actual supervision indexes of many commercial banks are used in analyzing the problems that are reflected by the supervision indexes.From the supervision indexes of major banks,it can be found that the traditional credit business of commercial banks in China account for a large proportion and usually are highly centralized,while innovative businesses are developing at a relatively low speed.As the increase of capital complement pressure,those banks could possibly face with pressure of financial liquidity.In order to relieve such a big supervision pressure,commercial banks in China must take precautions to supplement capitals from multiple channels,reduce capital-consuming business,and transform the original profit-making and growth method,adjust the business proportion,reduce term mismatch and develop high-quality financial and innovative products.Besides,it is also very important for commercial banks to strengthen their competitiveness in order to achieve long-term development and support the construction of the real economy of China.