Research On Improvement Of Risk Management Of Bond Business Of L Bank

Since China’s economic growth has entered the "new normal",the domestic bond market has been increasing in size,trading volume and issuance,The management system is improving day by day.The system has been improved day by day,the bond market will have to face various risks.According to the data,as of November 2021,29 provinces(municipalities directly under the Central Government)have defaulted,and the total number of defaulting has reached 646,with the total amount of defaulting reaching 584.535 billion yuan,which makes the credit risk of commercial banks’ bond business constantly upgraded.At the same time,the transaction volume of the bond market is growing,and the scale of the amount of funds in the market directly affects the bond interest rate and price.With the promotion of the interest rate market,the central bank has lowered the reserve requirement ratio for several times,and the loan interest rate for small and medium-sized enterprises,which may directly lead to the interest rate risk,and reduce the profit space of commercial banks.This has prompted commercial banks to strengthen their risk management and prevention of bonds.In order to improve profitability,commercial banks have achieved rapid development of bond business.However,with the development of business,risks have also increased and risk management ability has also faced challenges.Therefore,it has become the top priority of risk management for commercial banks to clarify the areas in which risks often occur in bond business and formulate countermeasures such as risk identification,measurement and prevention.As a large urban commercial bank in Northwest China,L Bank has achieved rapid development in bond business,but its business risks are also increasing.For example,the Baoshang Bank event in November 2020 increased the risk of L Bank.By studying the current situation and development of bond business risk management at home and abroad,this paper defines the basic ideas of bond business risk management,draws on the relevant theoretical knowledge of risk management,analyzes the current situation of bond business and risk management of L Bank,puts forward the problems existing in the risk management of bond business of L Bank,and analyzes the causes of the problems.Propose an improvement plan.First of all,the merits and demerits of the measurement methods of interest rate risk directly affect the risk control of commercial banks’ bond business.This paper will improve the measurement methods of interest rate risk of bond business,and make empirical analysis of the measurement of interest rate risk of bond business by using the Va R method.Secondly,in order to improve the credit risk of bond business,this paper mainly introduces the logistic model to optimize the credit risk with the help of data analysis on the basis of determining the improvement methods and principles of risk management.At the same time adjust the asset allocation structure,strengthen the construction of liquidity risk management information system;Finally,implement and safeguard according to the optimization scheme.To sum up,commercial banks cannot meet the unstable financial environment with the traditional risk management mode of bond business.It is hoped that the analysis of risk management problems of bond business can provide references for risk management,and at the same time,it can provide effective reference for other commercial banks and financial institutions according to the research conclusions of this paper.