Graham-Kinney Formula And Analytic Hierarchy Process Risk Evaluation System Of Commercial Banks

With the increasing competition from the opening of financial market, interest rate marketability and the reform on exchange rate, Commercial banks in China expand their business constantly, at the same time, the risk in operation became more complex than ever. From the research of bank crisis occurred in recent years, we discovered that besides the objective environment, the commercial bank are lacked of the advanced risk assessment system is an extremely prominent reason. Therefore, we should make focus on strengthening commercial banks risk evaluation capacity as soon as possible, building scientific monitoring system, making credit risk, market risk and market risks as a whole into the bank's management system. It has become the key of commercial banks to establish and maintain its core competitive advantage. In this situation, the research on commercial banks risk evaluation system chose Graham-Kinney formula and Analytic Hierarchy Process (AHP) to establish models of the commercial banks to evaluate the risk, and listed domestic joint-stock commercial banks as example.The main study is as following:1. According to the state commercial banks risk assessment of laws and regulations, establish a comprehensive, accurate and suitable commercial banks risk evaluation index system, and Identify weight indicators by Delphi method, Graham-Kinney formula, and the Analytic Hierarchy Process (AHP).2. Build risk assessment model of commercial banks, collate and inspect data through check lists and method of interpolation on the annual report of the selected banks, and get the consolidated risk results of commercial banks.3. According to integrated risk results of commercial banks, compared with authority ranking, evaluate the utility of model.By studying commercial banks risk evaluation system, successfully establish actual risk evaluation index system of commercial bank. Obtained three commercial banks' annual reports in 2006,and made comprehensive evaluation of the three banks' ability to resist risk. Compared with the authoritative ranking from "Banker" magazine in United Kingdom, and finished the analysis on results. The study has a very positive significance in correct assessment on risk of commercial bank, promotion of positive impact on commercial banks by internal control and the realization of the positive significance of the sustainable development in commercial banks...