| In recent years,China’s economy developed rapidly,people’s disposable income and the number of high-net-worth people have grown steadily,coupled with the influence of various emerging financial media in recent years.China’s commercial banks have gradually increased their investment in non-interest-bearing businesses.Therefore,private banking has maintained a rapid development trend in recent years,and its business scale has also been steadily increasing.However,the private banking business of China’s commercial banks starting late and is in the initial stage of development.There are situations that the services and products are single and homogenous,the customer evaluation system is imperfect,and the internal and external supervision systems are imperfect.Therefore,in the way of the development of private banking business of China’s commercial banks,there have been frequent occurrences of personnel operation risks.In this context,this article takes the "Hua Rong Chuan Mei Mining Fund Case" that occurred in the Industrial and Commercial Bank of China Chengdu Bin Jiang branch as an example.To analyze the operational risks of private banking in China from the perspective of impact and causes.The analysis in this article is mainly from the bank side,and supplemented by the perspective from the cooperative agency and investors to find that ICBC has many operational risks in the actual operation of the private banking business.It is believed that the first cause of the operational risks in the private banking business is employees meet the three major causes of the fraud triangle theory.The second is that the information asymmetry between bank employees and investors has caused the occurrence of adverse selection problems.The third is that the performance evaluation settings of private banking business do not meet the incentive theory and thus generate wrong incentives.The fourth is Due to the novelty and rapid development of the business,the relevant internal control system and external supervision mechanism are not perfect.These four points are the main causes of operational risks in private banking.Combined with case analysis,it was found that in this case,ICBC had problems including collusion between employees and fund issuers,failure to perform due diligence duties by relevant institutions,lack of effective internal control supervision mechanism,and imperfect network construction of private banking business information.Finally,this article has obtained some enlightenment through the case analysis method,literature analysis method and data analysis method and the above analysis,combined with the relevant laws and regulations in China.I propose that if you wantto better manage the operational risks that always exist in China’s private banking business,first of all,you must disclose the company information of the relevant product issuer,find an effective and reliable third-party guarantee,the bank needs to improve the business personnel risk supervision system,and improve the private banking industry.Network information construction,solutions for regularly disclosing product operations,and investors need to keep their eyes open,improve their own risk awareness and risk identification,and actively use legal weapons to protect their legal rights when their legal rights are violated. |
