C Rural Commercial Bank Risk Assessment And Control Research

General Secretary Xi Jinping said,the core of modern economy is finance,and the core theme of of finance is is how to prevent and resolve financial risks.As an important part of the financial field,the risk of banking affects the smooth operation of the financial sector.The global economic situation has become tense due to a series of events such as the epidemic and the Russia-Ukraine conflict,and domestic economic growth has also slowed down.In this context,the risk caused by the rapid economic development in the past gradually emerged.For example,Baoshang Bank risk events reflect the small and medium-sized banks on risk management of vulnerability and weakness.Compared with state-owned commercial banks,small and medium-sized banks have a short development cycle and imperfect management system,so the probability of risk is greater.The development of rural economy is inseparable from the support of rural finance,and rural commercial banks,as the main management body of rural financial field,it plays an important role in promoting rural economic development.At present,domestic financial institutions risk profile is not optimistic.Rural commercial bank as a special local legal person bank,because its main rural groups have low education level,weak credit concept,the risk control situation is more severe.Some rural commercial banks’ non-performing loan ratio and other risk indicators remain high.With the strengthening of national supervision,how to reduce financial risks has become an important task for rural commercial banks.This paper takes C rural Commercial Bank as the research case,draws lessons from the control theory of risk management,analysis of bank risk control status,and uses the entropy method to measure the risk control level of the bank,so as to find out the problems existing in the risk control of the bank,and puts forward the optimization plan.The results show that the risk control mode of C Rural Commercial Bank is more perfect than that of other rural commercial banks,and the level of risk control is also higher than the average level of the bank system.However,there are still some problems in risk management,such as jumble of organization,wide coverage of risk control,dilution of risk management consciousness of staff and lack of scientific quantitative technology of risk control.Finally,this paper puts forward the optimization plan in categories: First,it proposes measures to enhance the management department’s risk disposal power and strengthen the enterprise association identification ability in risk monitoring for market risks.Second,for operational risks,measures such as introducing third-party institutions for staff recruitment,comprehensively updating scientific and technological equipment,and establishing operational systems in line with the new situation are proposed.Third,for credit risks,it proposes measures such as the formulation of regional characteristics of credit loan products,reasonable adjustment of reward and punishment mechanism for credit loans,optimization of bad debt recovery model and so on.Fourth,for liquidity risks,measures such as the establishment of an early warning mechanism for liquidity risk indicators,a mechanism of flexible adjustment for the ratio of deposits and loans,and flexible updating of emergency plans for liquidity risks are proposed.