Research On The Risk Management In Inter-bank Market Business Of Domestic Commercial Bank

With the gradual reform of interest rate liberalization in China,the development of financial market is not only a process of liberating capital price,but also a transformation of financial environment in which commercial banks suffer from weak growth and narrow margin.Unlike the traditional banking,interbank business has sprung up and plays an important role in the sector of strategy plan and profit promotion.Compared to the traditional banking,interbank business has the advantages of large amount,convenient process,fast growth and high profit.Therefore,since 2009,interbank business has enjoyed a rapid development,becoming the third major business right after corporate banking and retail banking.However,with the booming growth of interbank business,the shortage of risk control has also been recognized.In recent years,many risk events have occurred as the result of lagging regulation,incomplete internal control and nonstandard market guide.Traditional risk control model is neither appropriate nor referential.This paper analyzes the development of the interbank business in China,and discusses the theories of bank risk management.By listing the effects of regulation policies and internal control mechanism,this paper points out deficiencies in risk management and puts forward the corresponding suggestions.By introducing the risk event in Bank H,this article deeply analyzes the current risk situation of interbank business and the financial instruments for regulatory arbitrage;this article not only presents several kinds of typical transaction models,but also puts forward some urgent risk points and preventive measures.Finally,aiming at the problems of risk management in interbank business,this paper puts forward some optimized methods;after summing up the risks which commercial banks are facing,this paper gives some useful suggestions for the further development of interbank business.