Construction And Optimization Of Chinese Commercial Banks' Comprehensive Risk Management System

Since the Commercial Bank came into being, risks are inextricably linked with it like a shadow all along. With the ongoing development of banking services and the increasing market competition, the bank risk also begins to present its complicated and volatile characteristics. Today's world economy is advancing at high speed and the financial liberalization and globalization tendency are more and more remarkable. Commercial Bank is involved in such a huge tide of global economy development and the complexity of the risks and dangers it faces are higher than any time in history. China is a developing country in its transitional stage with a relatively complicated external economical environment and underdeveloped banking industry. Therefore, the manifestation of the risks is more special, which requires more demanding risk management. If our Commercial Bank intends to take the initiative in the intense market competition, it must lay a firm foundation in management, upgrade management concepts and renew the patterns of business operation. But the realization of all the above can be materialized without the establishment and improvement of an effective bank risk management system. In June,2004, with the debut of Basel Capital Accord, higher request to the bank risk management is being put forward and Chinese Banking industry's reform will face new challenges. Based on Basel Capital Accord, this article is mainly about how to establish the commercial bank's risk-oriented comprehensive risk management system by integrating with the present situation of our commercial bank risk management, attaching more importance to the daily operation and management as well as the effective risk control to raise the Commercial Bank's risk management level in our country and lay a firm foundation for the Commercial Bank to have the advantage in the intense competition of banking industry.The article includes six parts:First part, introduction. This part mainly introduces writing purpose, research background as well as writing methods adopted etc., stressing the importance of the research into the establishment of Commercial Bank risk management system for the steady development and competitiveness enhancement of the Commercial Bank in our country. Through the review on risk management and Basel Capital Accord as well as the analysis on their relations, the second part mainly points out the apocalypse and the significance of the risk management system set forth by Basel Capital Accord regarding bank risk management. The third part indicates that the grounds for the credit risk analysis difficulties and characteristics. According to Basel Capital Accord, comparison has been made to the situation of some commercial bank risk management system in our country, analyzing its development achievements and disadvantages, which is the emphasis discussed by the next part. The fourth part mainly refers to Basel Capital Accord, pointing out the insufficiency and improvement plan existing in the Commercial Bank risk management system in our country. The fifth part is to put forward the proposal for establishing the comprehensive risk management forewarning system and strengthening credit risk management in view of the problems existing in commercial bank operation that "merely emphasize on credit investigation, neglect credit management" and the procedure for loan examination and approval is excessively long etc..