Reputation Risk Management Of Small And Medium-sized Commercial Banks In Internet Environment

As financial institutions that manage risks,the operation foundation of commercial banks is based on credit and expectations.In this point,reputation is the basement of the survival and further development of banks,and the foundation for realizing and creating values.A good reputation will help banks to enhance its security,stability and competitiveness.Therefore,reputation risk management is an important aspect of risk management of commercial banks.In January 2009,the Basel Committee on Banking Supervision clearly classified reputation risk as the second pillar in the consultation draft of the Basel New Capital Accord,requiring commercial banks to add reputational risk management in the comprehensive risk management;China Banking Regulatory Commission also issued" commercial bank reputation risk management guidelines" in 2009,formally incorporated it into its supervision duties.With the further development of the socialist market economy with Chinese characteristics,the domestic banks have also entered a critical moment in the comprehensive deepening of reform.Opening up the banking sector,introduction of foreign banks,interest rate liberalization,strict supervision of charging services,and accelerating exposure of poor assets all put increasing pressure on China's commercial banks.Besides,the impact bought from Internet finance to the traditional banking business model should also not be underestimated.In this case,the competition between domestic banking industry intensified greatly.In addition,the rapidly maturing of consumers'self-protection awareness,aided by the Internet environment,putting forward higher requirements for the management of reputation risk for banks.In this case,the reputation risk management system of small and medium-sized banks in the Internet environment is researched in this paper with QS bank as an example,giving the following conclusions:(1)With the deepening of domestic banking industry reform,the restrain mechanisms of reputation risk on commercial banks is gradually mature,and the challenge of reputation risk management bought to the bank risk management is increasing day by day.To strengthen the domestic commercial bank reputation risk management,build perfect and effective reputation risk management system has become a priority among priorities for regulators and bank managers,which includes the construction of organization,clarify of responsibilities,establishment of the management process,the formation of effective evaluation mechanism.(2)In the Internet environment,reputation crisis further shows its randomization of outbreak,fast speed of spread,and wide range of coverage,putting forward higher requirements for the management of reputation risk.Strengthening monitor and surveys for the reputation crisis using Internet channels,establishing of early warning mechanism and emergency management process,strengthening the channels of communications are important measures to deal with reputation crisis in Internet environment.(3)Small and medium sized banks are an important supplement to large banks,and occupy an important position in the domestic financial system.Compared with large commercial banks,small and medium banks are facing greater challenges in various aspects of reputation risk management,including the management of technical means,the construction of talent team and so on.Supervision agencies from the top-level design and regulate the reputation risk management system and process of small and medium banks is an important way to improve the reputation risk management capabilities of small and medium banks.The innovation of this paper lies in two aspects.The first one is the study on the development trend of financial public opinion in Internet environment,exploring the effective and reasonable means to enrich and perfect the theoretical system of reputation risk management of commercial banks in China.The second one is exploring the strategies and methods of reputation risk management of small and medium sized banks in Internet environment with the QS bank reputation risk management system as an example.