Domestic Y Banking Operations Under The New Basel Capital Accord Risk Management Studies

According to The New Basel Capital Accord, being formally publicized in June 2004, operational risk is resulted from Banks' Governance Mechanism and internal control failure, such as inadequate internal procedures, invalid corporate governance structure, staff unauthorized operation, high-risk businesses, which can cause a loss to banks because banks can't make a timely and effective response to cheating, poor decisions or something else. With the deepening of economic integration, our banking industry faces more and more vigorous competition. Various risks, such as operational risk, must be along with the enlargement of banks'scale and the increase of transaction volume. It's a new trend to consider operational risk, credit risk, market risk as comprehensive risk management compensation comprehensively. With respect to this current situation, The New Basel Capital Accord is the first to list operational risk into risk management, including the relevant methods. Meanwhile, it also put forward standards for qualifications of the agency. That's the trend our international banking supervise risks!Nowadays, our country is experiencing great changes in both economy and society, and also we have imperfection of internal control mechanism, so our banks not only face high-operation-risk, but also have different forms and causes from other countries, which is unique. The author tries to use the theory of modern financial management, based on the New Basel Capital Accord and experience, and make a research on the commercial bank systematically. On the base, the thesis make measurements to commercial bank of China.The paper contain six parts.The paper first introduces the definition, characteristics and development of operational risk management stage, and then introduces the facts which influence operational risk measurement in "The New Basel Capital Accord". And set up the theoretical framework in-depth study. Second, the author analysis the operational risk in Y bank, based of data and case of Y bank, in this part the author evaluate the operational risk by using the revenue model of CAPM model. Third, the thesis explained the reasons that cause the operational risk in Y bank. Above all, the author make specific proposes for the Y bank, based on the analysis of the situation of Y bank and the experience of the west commercial bank.