Research On Financial Risk Identification And Prevention Of J City Commercial Bank

Along with the economic globalization,finance has become an important driving force of Chinese economic growth.However,finance also causes a lot of risks while promoting the development of Chinese economy.As a key part of the financial field,city commercial banks play an important role in promoting the development of local regional economy.However,most of the existing city commercial banks in our country are coming with the economic reform and development,and the development system is not yet mature.Especially under the impact of the epidemic,the financial risk system of Chinese city commercial banks cannot resist the impact of multiple economic factors.Financial risks are frequent.Facing such a bad economic environment,it is urgent to perfect the financial risk system of the city commercial bank,strengthen the bank’s ability to resist the risk.The majority of existing studies on the financial risks of city commercial banks are based on the sample of large-scale city commercial banks,and the proportion of Chinese small and medium-sized city commercial banks is quite large.These studies do not provide reference suggestions for the improvement of financial risk management system of small and medium-sized city commercial banks.Therefore,the study on the financial risks of small and medium-sized city commercial banks remains to be explored thoroughly.Taking J City commercial Bank as an example from 2019 to 2021,this paper analyzes the assets,liabilities,profits and equity status of J City commercial Bank through literature analysis and case study and finds that: In recent three years,the operating revenue and total operating amount of J City Commercial Bank have been declining year by year,the non-performing loan ratio has been increasing year by year,the profit margin of assets and capital is low,and the cost control ability and profitability are poor.Then,the Camel evaluation index system is used to identify the financial risks of J City commercial banks from the aspects of capital adequacy,asset quality,management level,profitability and liquidity level by combining qualitative and quantitative methods.The final research results show that there are loopholes in the financial risk system of J City commercial bank,and its capital adequacy,asset quality,management level and profitability need to be improved.Based on the analysis and evaluation of the financial risk index system of commercial banks in J City,this paper puts forward corresponding improvement suggestions from the aspects of capital adequacy,asset quality,management level and profitability.(1)In terms of capital adequacy,it can broaden the capital raising channels and strictly supervise risk assets;(2)In terms of asset quality,risk monitoring can be strengthened,bank credit system can be improved,financial innovation can be implemented and "integration of commercial investment" can be developed;(3)In terms of management level,it can optimize the internal control system,improve the quality of managers and enhance the professional skills and quality of employees;(4)In terms of profitability,it can improve the operation rate of funds,increase the proportion of long-term loans,increase credit delivery and reduce the cost of funds.The research conclusion has a certain practical significance for how to comprehensively improve the financial risk system of J city commercial bank to provide a theoretical reference,and at the same time,the study also provides reference for similar small and medium-sized city commercial banks to optimize the financial risk system and strengthen the ability to resist the risk.It is hoped that the study can contribute to promote the healthy development of the financial market in our country.