On Financial Risk Of PSBC Under The Background Of Transformation

Postal savings bank of China(PSBC)is a special commercial bank that is different from other commercial banks in strategic positioning.Under the background of the transformation from the postal system,joint-stock system reform,introduction of strategic investors and listing,it has formed a unique "self-operation + agency" model,large-scale retail customer base,service for small,medium-sized enterprises and agriculture,which together constitute the background and causes of financial risks.In the environment of economic globalization and open to the outside of the financial market,it is essential for PSBC to strengthen the financial risk prevention ability and improve the financial risk management system so as to ensure continuous healthy development.In the current research on financial risks of commercial banks,relevant scholars have studied state-owned commercial banks in a large proportion,among which the research focuses on the five traditional state-owned commercial banks.However,there are few studies on PSBC,which was founded late and lacks credit experience and risk management experience.This dissertation chooses PSBC as the case study object,hoping to supplement the existing research results.Based on the analysis of the status quo of financial risks of PSBC under the background of transformation,it can be seen that: Firstly,in terms of asset quality risk,PSBC adhere to the strategy of giving priority to individual retail loans and avoiding loans from companies in high-risk areas,so as to maintain a very low non-performing loan ratio.At the same time,they have sufficient provisions for loan losses and strong resistance to asset quality risks.But it's heavily dependent on big clients in terms of public lending.Secondly,in terms of liquidity risk,the liquidity rate fluctuates,and the reason is that there is a period of maturity of the bonds that have a long term,and some of the financial products have a short term of maturity and the volatility of the market rate.Thirdly,in terms of profitability risk,net interest income is the main source of operating income,and the intermediate business foundation is relatively weak,resulting in the strong dependence on traditional business at present.At the same time,the huge distribution network brings about high agency fees,which increases the actual debt cost and leads to the highest cost-to-income ratio.Fourthly,in terms of capital security risk,PSBC were obviously short of capital before the reform of stock ownership system.After the share reform and the introduction of strategic investors,the risk of capital security has been reduced,and the capital adequacy ratio has been gradually raised to meet the domestic regulatory requirements,with a gradually positive trend.Fifthly,in terms of operational risk,due to weak internal control and insufficient personnel allocation,there have been many capital cases since its establishment,indicating that PSBC still have loopholes in risk prevention and control.In view of the current situation of PSBC's financial risks,this paper proposes financial risk prevention strategies from the following five aspects: first,prudent management principles should be adopted to continue to give play to the advantages of low non-performing loan ratio and reduce the dependence on big customers.Second,PSBC should closely monitor liquidity indicators,rationally allocate assets and liabilities.Third,promote the construction of capital constraint mechanism and strengthen the regulation of the total amount and structure of risk assets.Fourth,PSBC can not only vigorously develop intermediary business to explore new sources of profit and income,but also pay attention to the cooperation between postal savings groups to reasonably control the cost-income ratio.Fifth,strengthen the construction of internal control and improve the overall quality of personnel.