Comparison Of ASEAN-4 Countries' Banking Risk Management

Since the global financial crisis,the world has maintained low growth for eight years,and the global deflationary situation is still continuing.Long-term low interest rates may cause investors to seek higher-yield risk-taking activities,resulting in the potential growth of asset price bubbles.Affected by the economic downturn,the quality of global banking assets also showed a deteriorating trend.The rise of non-performing loan ratio of commercial banks will obviously increase the risk of commercial banks.Therefore,the issue of banking risk management has become increasingly prominent.Based on the theory of contemporary banking supervision,this article describes the development of the banking industry in the ASEAN-4 countries(Indonesia,Malaysia,Singapore and Thailand).According to the CAMELS rating system's capital adequacy ratio(C),asset quality(A),profitability(E),and liquidity(L),eight indicators for measuring banking risk are selected:capital adequacy ratio,core capital adequacy ratio,non-performing loan ratio,return on assets,return on equity,net interest margin,current assets ratio,and loan-to-deposit ratio.This paper applies the principal component analysis method to empirically study the ASEAN-4 countries'banking risk,and reveals the status and trends of the banking risk management in the four countries during 2010-2016,thus providing reference for China's banking industry risk management.This paper is divided into six chapters:Chapter One is an introduction,expounding the research background and significance of this paper,introducing relevant literature at home and abroad,and putting forward the research method,index selection,structure arrangement,innovation and deficiencies of this article;The second chapter analyzes relevant theories,expounding the inherent fragility of the financial system and the inherent vulnerability of financial institutions;The third chapter discusses the status of ASEAN-4 countries' banking risk management;the fourth chapter conducts the country's empirical analysis of the ASEAN-4 countries' banking risk management;the fifth chapter conducts horizontal empirical analysis of the ASEAN-4 countries' banking risk management;The sixth chapter analyzes the causes of changes in the risk management of the ASEAN-4 countries and proposes implications for China's banking risk management.The ASEAN-4 countries are adjacent to China and belong to the developing countries.Their banking system shares many similarities with China.Therefore,to study the ASEAN countries' banking risk management capabilities,assess and analyze their level of development and banking risk management capabilities,and learn from the useful experience of their banking risk management,which will accelerate the reform and development of China's banking industry,and further enhance the risk management level and capabilities of China's commercial banks.