Research On The Risk Of Buying Commercial Resale Business In China's Commercial Banks

Buying securities and return sale is one of the important currency businesses of China's commercial banks,which not only help bank get rid of traditional bound of model of Debt Support,but also bring profits to bank by its features of low-cost,low-risk,good creativity and comprehensive crossover.In recent years,with the fast development of system of shadow banking and regulation of supervise department,commercial banks buying securities and return sale business shake a lot.With the battle of innovation arbitrage and regulation,the business experienced three stages of cruel expansion,slowly shrinking and frequent accidents.Buying securities and return sale business make financial market active,improve the profits model of commercial banks,and meets the financial demands of different parties.However,the fault of financial creativity ought to be cared about.There are many problems when bank run certain businesses: term mismatch will cause liquidity risk;illegal operation will cause operation risk;use bill and trust assets to run buying securities and return sale operation means run currency as credit assets to avoid supervise index such as: loan-deposit ratio,capital adequacy ratio,and so on.This would influence the effect of supervise,and make the supervising of financial much more hard.This paper focuses on buying securities and return sale business,analyses every kinds of risk from macro and micro view.Then based on the analysis of risk,came out suggestions: supervise departments can control liquidity risk by publishing guiding liquidity risk index,limiting the quota of term-mismatch and the proportion of minimum liquidity,managing borrowers in a comprehensive system and pick customers in a prudent attitude,making supervise departments integrate accounting subject of interbank business and relevant accounting method.Meanwhile,they can make sure buying securities and return sale business develop regularly by refining buying securities and return sale to control risk.At last,this paper talk about the case of Beijing branch of Agricultural Bank of China,which is about 3.8 billion dollars,analyses the risk of illegal operation,lax personal management and so on.Then some suggestions of optimizing business operation,pay more attention to supervise and education to works are come up with.