Our Commercial Banks' Study On Risk Management During The Transition Period

Finance is the core of modern economy. To achieve the economic sustainable development the soundness run of the financial system is essential.To achieve this goal,it not only requires the market mechanism having a well-developed self-regulating and self-stability function, but also requires a flexible and effective regulation of the Government to conduct an appropriate and timely intervention.China commercial banks provide efficient support for the smooth progress of gradual reforms and macroeconomic growth, based on the system and history, as well as their own factors, they also paid a high price——accelerate the financial risks's accumulation, the commercial banks'non-performing assets accumulation is difficult to resolve and the incremental is difficult to contain.It resulted in more and more large scale non-performing assets, not only deteriorate the commercial bank's financial base and increase the pressure to pay, but also weakened the financial system's efficiency and reduced the stability of entire financial system.It has deepened the possibility of regional and systemic risks.If we don't take timely and effective measures to prevent and dissolve the commercial bank's financial risk, it most likely broke out local financial crisis. Then how can we resist and defuse financial risks of commercial banks effectively,this paper will analyse the performance, causes and effects of the Chinese commercial bank which in the transition period and under the Soft budget constraint. And then it also gives a conclusion about the selection of the remediation strategies...