The Risk Management Of The Commercial Bank In China

China's economy is now in a transitional period in which the traditional central planning system has been broken and the market ecomony system has not yet been established. With the deepening of the economic reform, the 4 state　owned specialized banks, namely the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Construction Bank of China and the Bank of China are being transformed into commercial banks, which are bound to play a major role in the country's financid system.　Operating in a market economy, commercial banks differ greatly from the specialized banks under a central planned economy in terms of both bussiness environment and operation mechanism. A brand　new environment and the goal to maximize profits will pose a great challenge to commercial banks ——bank risk control. That is the core of commercial banking, the quality of which has a direct impact on the survival of banks. This paper, based on the study of western theory and practice on commercial bank risk control, attempts to work out an approach to commercial bank risk control suited to China　s specific conditions.　This paper consists of six parts. The first part focuses on the risks and risk control of commercial banks, including such points as theoretical determination of risks, concept of commercial bank risks and its features, causes and types, risk matching and efficiency analysis, and concept of commercial bank risk control and its implication, nature, target and content. The second part deals with the traditional theories on commercial bank risk control and their latest development, and suggests some theories and methods in that field. In the third part, the writer, firstly, discusses the main risks faced by commercial banks in our country, and then, looks into the causes of the risks from the aspects of external environment and internal management, and finally, he analyses the formation and transmission mechanism of commercial bank risks from the perspectives of property right system, gorernmental behaviour and enterprise behaviour. And the following part explores the possibilities and ways of guarding against and evading the risks. The fifth part discusses the tools applicable in the attempt. The last part concerns how to strengthen the external monitoring of commercial bank risks.