Research On Factors Influencing Risk Management Capability Of Urban Commercial Banks In China

Urban commercial banks were formed in special period and historical background of the development of China's financial industry.The original intention of setting up city commercial bank is to dissolve the risk of city credit cooperative.With the continuous development of urban commercial bank industry,risk management has become the core competitiveness of urban commercial banks.The faster the economic globalization develops,the more complex the risk management of banking industry will be.In order to achieve long-term,sustained and stable development,urban commercial banks must be familiar with various risks arising from their business activities and formulate effective countermeasures against the risks they face.As the development of urban commercial banks in China is relatively short,so far only a short period of more than ten years,their historical origin determines their inherent defects.The concept of risk management concerning about urban commercial banks is not mature,and the system of risk management is not perfect,so the risk management ability of China's urban commercial banks is far behind that of developed countries.In order to achieve smooth development,urban commercial banks need to combine their own high default rate characteristics with in-depth analysis of the types of risks they face as well as the factors affecting their risk management ability and other aspects.They need to enhance and develop the risk warning mechanism,risk management mechanism and risk response mechanism of urban commercial banks.Based on the Basel Accord and from the perspective of comprehensive risk management,this paper takes Bank D for example to analyze the influencing factors of risk management ability of urban commercial banks in China.This paper is divided into six parts.The first part is introduction,which describes the research background and purpose of this paper,explains the importance of risk management in commercial banks,clarifies that risk management ability of commercial banks is the core competitiveness of banks,and then elaborates the research ideas and framework,so that readers can have a general understanding of the content structure of this paper.The second part is theoretical basis and literature review,introducing the basic concepts of risk management and risk management ability of commercial banks,the development process of Basel Accord,the research status and development trend at home and abroad.The third part is the current situation of risk management ability of urban commercial banks in China.It analyses the development stage of urban commercial banks in China and the main risk situation they are facing at present.The fourth part is the questionnaire design of Bank D.Firstly,the hypothesis is proposed based on the research results of domestic and foreign scholars.Secondly,the background of Bank D is introduced,and the operating indicators,non-performing loan indicators and main risks that Bank D faces are analyzed.Thirdly,the questionnaire is designed according to the hypothesis.Hypothesis: The risk management ability of Bank D includes six first-level indicators such as risk management strategy,risk management concept,risk management process,risk management organizational structure,risk management ability,risk management data and information system,and secondary indicators under each first-level indicator.Finally,the questionnaire data of Bank D's employees and other people who have business contact with Bank D on their perception of Bank D's risk management ability are collected,so as to pave the way for the data analysis in the next chapter.The fifth part is the analysis of data processing results,which is the most important chapter of this paper.This part carries out reliability analysis,validity analysis and descriptive statistical analysis of the data collected in the fourth part of the questionnaire,so as to provide data support for the research conclusion in the next chapter.The sixth part is conclusion and suggestion.According to the data analysis results from Chapter 5,the conclusion is drawn as follows: first,to evaluate the risk management ability of Bank D;second,to find out the problems in the process of urban commercial banks' risk management in China,to put forward suggestions for the deficiencies in the risk management of urban commercial banks in China,and then to prospect the next step of the risk management of urban commercial banks in China.