Research On The Risk Management Of Beijing Bank On The Basis Of "CAMELS"

With the further deepening of domestic financial reforms,the banking industry has become increasingly competitive,and the risk management of commercial banks has become increasingly important.Commercial banks,as the most important financial institution in China,have obvious influences and effects on the entire economic and social development.However,commercial banks are also the main players in the market,their goal is to achieve maximum profit goals through risk management,but the uncertainty,diffusivity and concealment of risks increase the difficulty of bank risk management.In addition,the painful lessons of the financial crisis have made the government intensify financial supervision and improve the risk management standards of commercial banks,which has put more pressure on banks in turbulent financial markets.Therefore,under the background of regulatory strengthening and market upheaval,it is of great significance for Chinese listed banks to optimize their risk management results and thus improve their operating performance,to stabilize Chinese financial market and improve their competitiveness.This paper uses Bank of Beijing as the research object,and analyzes its basic operation situation and risk management status to find out the causes of the risks.Based on this,it proposes risk response measures for Bank of Beijing.First of all,this article elaborates the related theories of risk management of commercial banks,there are information asymmetry theory and comprehensive risk management theory respectively.Then,based on the development of Beijing Bank,Beijing Bank's risk identification is mainly to analyze its industry risk and the bank's internal financial and operational risks,and to find out the causes of its risks.Secondly,we use the CAMELS analysis method to perform a longitudinal comparative analysis and cross-sectional analysis of Beijing Bank's risk level.A longitudinal analysis selected Beijing Bank's data for 2007-2016 and found that Bank of Beijing performed generally well in six aspects of risk level,although in the three years after the listing,the volatility of Beijing Bank's various indicators has been relatively large,as various aspects of the bank continue to improve,its performance in various aspects of risk management has gradually stabilized;horizontal analysis compares Bank of Beijing with Shanghai Pudong Development Bank and Nanjing Bank.The study found that Bank of Beijing has a middle ranking among the six indicators of risk level.Finally,on the basis of the above analysis,we propose a risk management response plan,including the development of a comprehensive risk management strategy,improvement of the bank's organizational structure,improvement of operational procedures for various types of businesses,improvement of internal control mechanisms for risk management,establishment of a comprehensive audit supervision system.The safeguard measures include improving the employee management system,building risk management information systems,strengthening internal cultural construction,and creating professional personnel.