Risk Management And Control Of Commercial Banks Under The Background Of Strong Supervision

The indirect financing of China,mainly coming from commercial banks,accounts almost 90% of the total financing in China’s financial system.This importance of indirect financing determines the role of commercial banks’ risk control in China’s financial industry.Since 1990 s,with the occurrence of regional and global financial crisis,the fast developing computer and data analysis techniques witnessed the weaknesses in commercial banks’ risk management.The economic recession in the real economy in recent 10 years,directly increases the occurrence of financial risks in the financial sectors,which requires stricter and more efficient financial risk supervision.The ever increasing economic,financial globalization strengthens the homogeneity feature of financial services offered by different financial companies,and thus increases the difficulty of risk management in their daily business operations.The past supervisory guidelines advocated for divided operations has become less and less efficient,and cannot satisfies the fast development of new or innovative businesses in recent years.In order to satisfy the need of these changes,our central government had taken the initiative to cope with new challenges since the last decade of the 20 th century.The 19 th National Congress of the Communist Party of China ushered into the proposal of “safeguarding the bottom line of no systemic financial risk”,since thatChina’s banking regulation has released a series of strict new regulatory guidelines.China’s banking regulation has entered into a new era of strict regulation.The risk management of commercial banks in China has increasingly become the focus in the financial field under the background of strong supervision.The study of the risk management of commercial banks in China has become a considerable necessity and reality.This dissertation takes the WG Bank as an example to study the risk management of commercial banks in the context of strict regulation.Thedissertationanalyzes the current situation of the risk management of WG Bank and other commercial banks by analyzing relevant business statistics concerning the credit risk and operational risk.Based upon the business operation statistics of China’s commercial banks,the dissertation first analyses the risk control of China’s commercial banks as a whole,andpoints out the weakness of risk management;and we analyze further the current situation of risk management of WG Bank,with the adoption of the 6 Cs’ principle of lending,thedissertation especially analyzes the problems existed in WG bank’s daily business operations(especially for the problems of efficient credit and operationalrisk control),and puts forward corresponding measures to solve the problems.Finally,the dissertation gives directions as to how to make improvement in future studies for the weakness of this paper.