Research On Financial Risk Management And Control Of Jiutai Rural Commercial Bank

At present,we are in the fission period of the world economic structure and order,the critical period of China's economic shift,the release period of deep-seated problems,and the implementation period of a new round of major reforms.Against the backdrop of “internal hardship” and “external trade friction”,with the downward pressure on the Chinese economy being increasing and the tightening of regulations,rural commercial banks have suffered very difficult circumstances and their development has entered a bottleneck period.Since the dilemma has emerged in various perspective,such as various degrees of decline on performance,exposed continually non-performing loans,more faster cleared risks,further compressed the profit-making space,insufficiency of financial innovation,the competitive situation confronted by rural commercial banks is becoming more arduous than ever.As Baoshang Bank was taken over and rigid payment was broken,some small and medium-sized financial institutions' funds has not only been tightened,but faced subsequently credit risk and liquidity risk fatally.These risks were finally reflected in financial risks.How to improve the financial risk management and control capabilities of rural commercial banks,how to respond to various new changes in order to resist a cluster of risks,and how to achieve stable operations and high-quality development of themselves have become important research topics.Therefore,this paper's research on financial risk management and control capabilities of rural commercial banks has practical significance for other small and medium financial institutions.This article takes Jiutai Rural Commercial Bank as its research object.Its predecessor was Jiutai Rural Credit Cooperatives.In December 2008,it was officially restructured into the first rural commercial bank in the Northeast of China.In January 2017,it went successfully public on the main stock of Hong Kong Stock Exchange.Given that severe competition and regulatory requirements have been coming increasingly,Jiutai Rural Commercial Bank,as a leader of a rural financial institution in the Northeast,is coincident as a microcosm of the status quo of the financial risk management and control within rural financial institutions.By extracting relevant data from Jiutai Rural Commercial Bank's financial statements,a financial risk evaluation system was constructed from four aspects: profitability,asset liquidity,debt management capabilities,and key indicators of commercial banks.The commercial bank's financial risk management and control capabilities are analyzed to find out the advantages and disadvantages.Furthermore,this paper analyses the cause of the problem and finally gives an improvement strategy.The research shows that the level of Jiutai Rural Commercial Bank's financial risk management and control is improving in an orderly and effective manner,but there are still three problems,which includes high costs and expenses,debt management level to be improved,and asset quality to be reduced.In the context of the macro situation where it is difficult to see stabilization,Jiutai Rural Commercial Bank was able to review the situation and adjust its business strategy in a timely manner.However,based on the obvious business homogeneity,the flaw of internal control system,and the lack of compensation measures for financial risk,there is an array of inadequate implementation with strategy.Therefore,this paper puts forward the measures to deepen the development of regional markets,increase financial product innovation,perfect the financial risk management and control system,and establish long-term capital supplement mechanisms to promote countermeasures.It is not only for solving the existing problems,but also allowing the company's managers to allocate resources reasonably and effectively,further to improve the ability to resist risks,which can ensure stable operations and sustainable development.At the same time,the research on the financial risk management and control of Jiutai Rural Commercial Bank,a representative rural commercial bank,can also reflect the current operating context of China's rural financial institutions,which is important for promoting the healthy development of China's rural financial institutions and maintaining social stability.