Research On International Business And Risk Prevention Of State-owned Banks From The Perspective Of Government Regulation

Since China's reform and opening-up,the international business of the state-owned banks has developed from scratch,from less to more,and has become an indispensable part of the main business of the state-owned banks.The international business of state owned banks has acquired a large number of important energy and resources for China,and has played an irreplaceable role in supporting the sustainable development of China's economy.When the state-owned banks' international business brings huge profits to state-owned banks and obtains important energy resources for China,it also brings certain risks.Therefore,it is necessary to research on the relationship between the international business and the risk of the state-owned banks,as well as the supervisory approach of guiding banks to carry out international business.The research carried out empirical analysis which based on the data of 6state-owned banks in China of the past of 10 years.The research show that,under the control of other variables,there is a significant negative correlation between the balance of international business loans of state-owned banks and the risk level of state-owned banks,there is a significant positive correlation between the capital adequacy ratio of state-owned banks and the profitability of state-owned banks,there is a significant negative correlation between the capital adequacy ratio of state-owned banks and the risk level of state-owned banks,there is a significant positive correlation between the assets scale of state-owned banks and the profitability of state-owned banks.Therefore,it is recommended that government regulators urge state-owned banks to raise capital adequacy ratio and increase the assets scale,in order to improve the risk resistance ability of international business risk of state-owned banks.In addition,in order to improve the government's supervision of international business of state-owned banks,the author of the paper combined his work experience in banking and analyzed the problems existing in the current supervision of the international business of state-owned banks.At last,based on the above problems,suggestions of policies are put forward.Firstly,set up special supervision department for international business of state-owned banks.Secondly,establish data statistics mechanism for international business of state-owned banks.Thirdly,establishing a policy oriented system for international business of state-owned banks.Fourthly,set up global economic and financial information publishing platform.Through these measures,we can better guide and regulate state-owned banks to carry out international business.So that state-owned banks can serve the national economic and diplomatic strategy and supports the going global of Chinese enterprises.Meanwhile,state-owned banks can also control the risk and maintain a reasonable level of profit.It is also conducive to the all finance industry and country economic stabilization and development.