Research On Financial Risk Management Of Rural D Commercial Bank

In recent five years,with the high-speed development of China’s financial industry,the local financial industry plays an important role in local rural credit cooperatives have also changed for the rural commercial bank.Compared with the past rural credit cooperatives,the function of the rural commercial bank on the one hand,inherited the past and still bear the important task of the service to agriculture,rural areas and farmers,on the other hand,after the role change had to face the increasingly fierce competition in the market and seek more profits for shareholders had to be taken into account.Under pressure,the financial risks of some rural commercial banks began to be exposed.It is increasingly urgent to improve the financial risk management ability of rural commercial banks and ensure their sound operation.Based on theories related to financial risk and financial risk management,this article will take D rural commercial bank of X city as the research object by referring to domestic and foreign research results.By analyzing the relevant data of D rural commercial bank and calculating its key financial indicators,it describes its financial risk situation,and then analyzes its current financial risk management situation,studies the existing problems in its financial risk management and the causes of the problems,and gives corresponding suggestions.Research has proved that D rural commercial bank has defects in financial risk management,including single operation mode,extensive management,unreasonable expenses,continuous growth of non-performing loans,imperfect internal control system,imperfect liquidity risk management,and imprudent operation of off-balance sheet business.Aiming at these problems,this paper puts forward countermeasures in five aspects:profit risk management,capital adequacy risk management,asset quality risk management,liquidity risk management and off-balance sheet business risk management.Specifically,such measures as developing diversified operations,improving the level of fine management,saving various expenditures,supplementing enterprise capital through external sources,controlling the growth of medium and long-term assets,strengthening internal control of corporate governance,clearing non-performing loans,improving the liquidity management system,controlling the credit granting of major transactions.It is hoped that through the research on the financial risk management of D rural commercial bank,suggestions can be provided not only for D rural commercial bank to improve the quality of financial riskmanagement,but also more small and medium-sized banks to improve their business conditions.