China's Listed Banks And Financial Risk Control System

In 2007, the sub-prime mortgage crisis broke out in the USA. In a minute, the sub-prime mortgage crisis influenced the whole world. The sub-prime mortgage crisis came from the banking sector. And the banking sector is affected by the sub-prime mortgage crisis the most seriously .In the background of Financial Globalization , Chinese banks have suffered a great loss because of their investments abroad .So it is important for us to study financial risks in our banking sector now. First, the background of Chinese listed banks is introduced in this paper. Second, the source of the financial risks of our banking sector is analyzed. Third, the financial risks controlling system of Chinese listed banks is constituted. The characteristic and the reason are analyzed from the perspective of stratagem. Forth, Balanced Scorecard and EVA are used to establish the system of Chinese listed banks. 14 listed banks are statistic and the results are explained. So a conclusion can be made that the financial risks controlling system is valuable for stakeholders of our listed banks.