The Country Risk Assessment And Control In The Transnational Operation Of Commercial Bank Of China

This article firstly analyzed in the mechanism of the country risk introduced to commercial bank transnational management. Because the country risk is different with other general commercial risks of the bank, this article make a analysis on the reason and theperformance of the transnational manages, the correlation factor influencing country risk to commercial bank. The auther pointed out that the uncertainty of operating economic environment and asymmetry of operating information are the sources of operating risks of transnational commercial banks. Uncertainty and information asymmetry are manifested in the political factors and economic factors.Afterwards, this article makes an introduction of the analysis method and appraisals targets system and country risk appraisal method in country risk management of commercial bank. And further proposed the feasibility and necessity of establishment of country risk assessment system of China's commercial banks. The country risk can be divided into risk evaluation of the economic indicators, the financial risk assessment indicators, political risk evaluation index three categories, respectively score. Finally, the composite scores determine the country risk score. Based on the theoretical analysis foundation, this article carry on empirical inspection to country risk of transnational management of commercial bank, analyzed specifically present situation and tendency of our country commercial bank transnational management. In view of the enlarging country risk tendency of our country commercial bank transnational management, the article finally put forward suggestions to strengthen country risk managements of our country's commercial bank's transnational business. And put forward the preliminary idea of constructing country risk assessment system in our country commercial bank. The author thinks that we should establish the country risk credit limit to avoid the country risk effectively.