The Characteristics Of The Board,Proportion Of Foreign Directors And The Risk Management Of Commercial Banks

The global financial crisis that occurred in 2008 challenged the risk management level of worldwide commercial banks.The risk management of commercial banks has thus attracted worldwide attention.At the same time,relevant research on the corporate governance of commercial banks is also emerging in China and even the world.The board of directors is the highest decision-making body of a company.The governance of the board of directors constitutes the core content of corporate governance.Commercial banks are financial intermediaries that are different from general enterprises in terms of high debt,strict supervision,and opaque asset transactions.Features should also have their special features.China's banking industry has a history of introducing foreign investment for more than 20 years.During this period,many experts and scholars have been studying how foreign investment will affect the operation of domestic commercial banks.On October 15,2019,the Party Central Committee and the State Council made a relaxation of financial A series of decision-making deployments such as restrictions on foreign shareholding in the industry,and another relaxation of restrictions on foreign shareholding ratios show that China must firmly follow through on the path of opening the financial market,so this article not only studies the characteristics between the board of directors and the risk management level of commercial banks The relationship between foreign investment and the introduction of foreign investment into the research framework further analyzes the role of the proportion of foreign directors in regulating the relationship between board characteristics and the risk management of commercial banks.This article first selects 9 evaluation indicators from liquidity risk according to the characteristics of commercial bank risk,and applies factor analysis to calculate a comprehensive score representing the level of risk management.Next,according to the characteristics of board governance,from the aspects of structural characteristics,quality characteristics,incentive characteristics and behavioral characteristics,the board governance characteristics of listed commercial banks were deconstructed and 6 indicators were selected,including the size of the board,the proportion of independent directors,and female directors.The proportion of board meetings,the frequency of board meetings,the education level,and the salary of directors are used as explanatory variables in this paper;then,some financial indicators related to the governance of commercial banks but not related to board governance are set as control variables,To eliminate their impact on the level of risk management;finally,this article uses a multiple linear regression model to conduct an empirical analysis of the variables sorted above,and based on the analysis of the results,summarizes the relationship between the characteristics of the board of directors and the risk management level of commercial banks relationship.Next,we will study the adjustment of the proportion of foreign directors to the relationship between board characteristics and bank risk management level.Using repeated factor analysis,the risk management ability scores of nine commercial banks with foreign investment are obtained,and then multiple regression models are used to test the regression coefficient between the product of these characteristics and the proportion of foreign directors and the level of risk management.The conclusion of this article is: from 2012 to 2016,the risk management level of China's listed commercial banks showed a downward trend.In 2016,China 's listed commercial banks had the lowest risk management level and an upward trend from 2016 to 2018.Among the board 's structural characteristics,the higher the proportion of independent directors,the higher the level of risk management.The level of education can significantly improve the level of risk management;in the behavior characteristics of the board of directors,the increase in the number of board meetings can significantly improve the level of risk management.The larger the size of the bank,the higher the cost of innovation and the difficulty of transformation,and the risk management level of the bank will be lower.With the increase in the proportion of foreign directors,the size of the board of directors,the proportion of independent directors,and board members are educatedThe positive correlation between the level of risk management will be significantly enhanced,but the positive correlation between the frequency of board meetings and the level of risk management will be significantly weakened.The proportion of female directors and the professionalism of board members are related to the risk management of commercial banks.The relationship between levels will not be affected by a significant increase or decrease.This article starts from moderately increasing the proportion of independent directors and the education level of directors,and adopting a reasonable and scientific approachSeveral aspects have been put forward,including foreign investment,increasing the number of board meetings,and diversified director incentive mechanisms.