The Study On Risk Control Of The Connected Transactions Of Small And Medium Sized Commercial Banks With Private Capital Partcipation

Since 2014,China has obviously increased the guidance of private capital participating financial institutions.Under the support of the policy,many private banks,financial leasing companies and Consumer Finance Companies have emerged.While private capital has speeded up into the financial field,the regulatory authorities and the people in the financial industry have also expressed many concerns about the financial institutions of the private capital participating banks,especially the local commercial banks(hereinafter referred to as the city commercial banks),which operate as deposits,as a result of their operation as a large amount of money and scattered money.Institutions,and triggered a wide and intense thinking:once private enterprises are holding small and medium sized commercial banks,will it be regarded as their own "back garden" and "cash machine" ? Will there be a "hollowing" behavior of the major shareholders? If private enterprises pursue the nature of maximizing capital efficiency and their instability in operation,will they abscond when operating poorly?Will the related banks be affected by the bankruptcy of the related shareholders,the loss of the quality of their own assets or their reputation,which may induce the insolvency of the bank or the run on the run?Based on the business practice of risk management in related transactions,this paper analyzes the positive and negative effects of related transactions as the positive and negative side of the "coin" from the objective and dialectical perspective,and concludes two different theories and their influences in the "benefit promotion theory" and "resource transfer theory".The positive role of fair related transactions and the inevitability of unfair related transactions are expounded from the perspective of economics.This paper selects the time window of2013-2016 years as the study and observation,and manually collate and analyze the proportion of private capital participation,the rate of non-performing loans,the rate of return on assets,and the relation of the private capital of the 37 cities with full data disclosure.This paper analyzes the risks and forms of unfair related transactions that may be induced by the private capital stock market,and carries out an empirical study.The empirical results show that the proportion of the private capital stock market firms has a positive correlation with the total amount of related transactions,and the related transactions account for the higher commercial banks,and the rate of bad loans is also high.It shows that private capital is activating capital efficiency and alleviating the difficulty of financing for small and medium-sized enterprises.Meanwhile,it also brings new risks to banks,such as related transactions,and the potential risks of the transfer of privateshareholders,"hollowing" and "devouring" banks' rights and interests are increased accordingly.Therefore,while encouraging private capital to enter the stock market,the original shareholders should also strengthen the awareness of risk control,control the access of the private shareholders,improve the internal guard system and the corporate governance structure,and improve the external regulatory system on the regulatory level,which should be given to the behavior of the shareholders to encroached on the interests of the banks by using related transactions.Pre warning and prevention,normal monitoring and strict punishment afterwards.According to the results of the study,this paper puts forward some suggestions on the management optimization and practical management of the affiliated trading company of the city commercial bank under the big tide of private capital flowing into the financial institutions,which provides a theoretical and practical reference for the private capital entering the banking sector.