The Financial Crisis Situation, China's Commercial Banks' Risk Management Study

Financial crisis coming from subprime debt crisis last more than 1 year from the outbreak in 2007 with the financial turmoil making extensive and rapid impact on every aspect of the economy. From the crisis we can see that the risk of commercial banks not only come from credit field but also from market field, such as the change of interest rates and exchange rate, and also from the operation field, etc. Besides, liquidity and law risks always affect the banks' assets. In China's commercial banks, main risks are credit risks; but accompany with marketization of interest and openning of our financial market, more and more market risks appear. And operation and liquidity risk exist in all business fields of bank. China' s current economic situation is very similar to the United States six years ago, there are low interest rates and soaring local market issues. The risks faced by commercial banks may be greater because of the lack of a wide range of real estate securities market of the risks associated with decentralized mechanism. Therefore, in the increasingly heated competition in the commercial banks, commercial banks in China should give top priority to the risk, make the necessary risk management and assessment, as soon as possible to implement the New Basel Capital Accord, for China' s national conditions to build a comprehensive risk management model of the whole banking business within the various levels and various types of risks to the overall management and implementation of a single indicator of risk to quantify the risk-adjusted returns.This paper studied the evolution of international banking risk management process, the international banking community on the general rules, "the Basel Capital Accord, " the contents of the presentation and a summary of more detailed and in-depth on the current international banks active in the best risk management the practice of credit risk, market risk, operational risk, liquidity risk, such as measurement, management, technology deep-level research.And then discusses China's commercial banks in risk management practice and development of the initial direction under the situation of financial crisis. At last the paper gives the advice of China' s commercial banks to build a comprehensive risk management system.This article is divided into five chapters, the first chapter is the Introduction to part of the study focuses on the background, significance, literature review and research methods; the second chapter analyzes the major banks in risk management theory; the third chapter discusses a detailed account of the international banking risk management methods and advanced management experience, combined with case analysis, model analysis, respectively, of credit risk, market risk, operational risk, liquidity risk management practices; the fourth chapter focus on under the current financial crisis, China's commercial bank risk management thinking and practice, and through demonstration analysis of VaR model shows how to measure the risk of commercial banks; the fifth chapter puts forward the direction of China's commercial banks to implement risk management and points out that China' s commercial banks should implement the New Basel Capital Accord and the comprehensive new model of risk management as soon as.