Research On Risk Management Of China's Commercial Bank Bond Investment Business

In recent years,due to the overall macroeconomic operating situation,the interest rate of deposits and loans of commercial banks in China has narrowed year by year,resulting in a narrowing of profit margins.At the same time,as the supervisory authorities have strengthened the supervision over the interbank business of financial institutions,the profitability of the interbank business of commercial banks has been affected.As a result,the profitability of traditional businesses based on deposits and loans has been continuously declining.However,with the rapid development of China's financial market,the pace of financial innovation has.accelerated,and the bond market has gradually matured.The bond investment business has become an important tool for commercial banks in China to broaden the use of funds and improve the asset structure.Because the bond investment business has high liquidity and flexibility and is in line with commercial banks' pursuit of profits and reduced risk as a management and management objective,bond investment business occupies an increasingly important seat in the use of commercial bank funds.At present,China's commercial banks have increased their investment in bond assets and regard bond investment business as an important fund business.Therefore,commercial banks need to coordinate the complex relationship between the risks of the bond investment business and their own operations and management so as to achieve the goal of achieving profitability.The first chapter of this paper analyzes the general situation of China's bond market;In the second chapter,the definition of the bond investment of commercial banks in our country is firstly defined,and the status quo of the bond investment business of commercial banks is analyzed,including the varieties and markets of the bond business invested;The third chapter puts forward the risks faced by China's commercial bank bond investment business at the present stage,analyzes the policy fluctuations such as the Fed's rate hike and brings fluctuations to the bond market in China,and lists the bond default cases in recent two years,from the case of defaulting bonds.In the middle,it can be found that among the existing bond investment varieties,since the national debt is guaranteed by the national credit,the credit risk is relatively small,and the credit risk is basically zero.In comparison,corporate bonds are faced with greater investment risks,and then the business is proposed.Banks should strengthen control over this risk.In this paper,we analyze the Shanghai Securities Enterprise Bond Index and quote the VaR-GARCH model to measure the market risk of Chinese commercial banks' bond investment in corporate bonds,and finally put forward countermeasures and suggestions for preventing bond investment risks.