Research On The Compliance Risk Management Of Asset Custody Business Of Commercial Banks In China

In recent years,with the rapid development of China's economic and financial market,the types and quantity of asset management have increased significantly.The total scale of domestic asset management has been over 100 billion RMB,which is very important to the stability of financial market.According to the global data,the asset management is also one of the largest and fastest developing areas in the whole financial service business.Asset custody refers to the asset custodian's action to protect entrusted asset from all kinds of risks in the asset management.Asset custodian can also provide capital clearing,valuation and accounting of entrusted asset,investment supervision,information reporting and other value-added services.As associated business of asset management,asset custody has an irreplaceable role in solving the moral hazard brought by principal-agent relationship and information asymmetry,which effectively protects the safety of entrusted assets and the interests of investors.S bank is a large and medium sized commercial bank in China.It is also one of the earliest commercial banks to carry out asset custody business in China and owns all asset custody licenses.After years of development,S bank ranks the top level in every aspects of asset custody business.With nearly 1/10 market size,S bank becomes an important component of asset custody industry.However,there are still some gaps between S bank and mature asset custody banks in terms of business system,business process,personnel and organizational structure,risk management system and risk management model.Therefore it is of practical significance to the development of S bank and other banks' asset custody business to put forward suggestions for improving compliance risks of S bank asset custody business in-depth study of its status quo.This article combines asset custody risk theory and the actual work experience,from the perspective of the external regulatory compliance analyzing the compliance risk cases,through the capability maturity model from the perspective of internal control compliance analyzing the problems of asset custody business of S bank and through the analysis of the characteristics and the status quo putting forward the optimization suggestions on the internal control system,business processes,staff training,management system improvement,risk management model,policy interpretation enhancement and the establishment of emergency plan and communication.The purpose of the article is to further reduce the possibility of compliance risks in S bank asset custody business,to improve its compliance risk management capabilities and to provide reference for China's commercial banks to expand asset custody business.