Research On Financial Risk Management Of Industrial And Commercial Bank Of China T Branch

With the acceleration of economic globalization,China’s commercial banks have entered the ranks of international financial competition.Due to the special nature that the commercial banks operate monetary capital and credit operations,the issues about risks has long been the hot topic of modern commercial banks.Improving the level of financial risk management of commercial banks is getting to be an important part to enhance the core competitiveness of enterprises.Currently,the level of financial risk management of commercial banks in China is far behind that of banks in Western countries.Hence,Absorbing advanced Western management techniques and developing a scientific approach of risk management which is consistent with the financial condition of our country have become an urgent demand to China’s commercial banks.This paper will use Industrial and commercial bank of china T branch as an example,by using theoretical knowledge of financial risk management for reference and combining with the T branch data in recent years,to evaluate and analyze the management status of financial risk comprehensively.This paper will measure the level of financial risk management of the T branch mainly from asset quality,liquidity,and Interest risk,OBS risk,profitability risk,then discover problems and analyze the reasons in conjunction with the relevant content in the financial statements.The research shows that T branch’s asset qualityis under high pressure,the low level of liquidity,off-Balance-Sheet activities expand rapidly,the market interest rate spreads narrowed,insufficient profitability.This paper argues that T branch should strengthen credit management;build liquidity risk warning system;build the OBS risk monitoring system;establish interest rate risk management departments to enhance product pricing power;enhance business consolidated profit ability to control operating costs and a reasonable cost.The main contribution of this paper is:combing theoretical knowledge practice T branch financial risk management research can help T branch to identify the financial risk to some extent,thereby increasing financial risk management of T branch,effectively enhance the comprehensive competitiveness,and provide reference for other commercial banks financial risk management.