Research On Bankers' Background Characteristics With Banks' Risk Management

Domestic commercial banks have become an essential part of China's financial system through several decades' reform and development.Accordingly,commercial banks have accounted for a huge amount of systemic risk.With the pioneering and researching on bank corporate governance,the academic circle gradually recognizes the significance of a sound internal governance mechanism for the bank's ability to defense risk.Based on the above argument and the theoretical support of upper echelon theory and social psychology theory,this paper tries to study the relationship between bankers' background characteristic and banks' risk management ability.This paper selects data of 68 commercial banks from 2013 to 2017,then collects background information of directors and senior executives,next processes the collected data,finally conducts empirical analysis with panel fixed-effect regression.In addition,the robustness test is performed by replacing the explanatory variables.According to the empirical results,the paper draws the following conclusions: First,with respect to the gender character,the higher the proportion of women in the bank's board of directors or management team,the less risk the bank assumes.Second,with regard to the age character,the average age of bank directors and senior management teams has an inverted U-type relationship with banks' risk exposure,and the turning points happen at the age of 48 and 44 respectively.Third,bankers with higher education qualifications have stronger risk management capabilities.Based on above conclusions,the paper advocates several suggestions: First,place emphasis on the emerging power of females in the banking industry and weaken the social bias caused by gender.Second,improve the internal talent training mechanism of banks and optimize the age structure of bankers.Third,the education qualification should be valued when appointing a banker,in the meanwhile,banks should encourage crews to further education.