Listed Banks' Risk And Prevention Of Corporate Fraud

Fraud of listed corporations in the securities market happened frequently in recentyears.Forexamples,QiongMinYuan,DongFangGuoLu,STHongGuang,DaQingLi anYi, ZhengBaiWen.YinGuangXia, ZhongTianQin, LanTianGuFen, etc. All these gave a warning to the particiates and supervisors in the securities market. We seldom touch the role of banks, which are most important channel of finance for the listed corporations, in the cause of disclosing fraud. If fraud happened in listed corporations, Banks will suffer a lot from this.In this article, I summarize some risks of banks in the cause of listed corporations fraud under the analysis of fraud methods. The risk of listed corporations fraud can be classified as: credit risk, operation risk, liquidity risk, law risk and reputation risk. At last, I put forward some feasible advices from the side of banks and supervisors.This article includes 4 parts: In the first part I discuss some theories and practices of relation between listed corporations and banks, and also take a deep study in the relation of bank and corporation in our country; in the second part I take emphasize on the methods of listed corporation frauds; in the third part I take a overall study in the risks of banks suffered from listed corporation fraud in our country, this study is based on the former 2 part analysis; In the last part, I put forward some feasible advice on how to prevent banks risks suffered from listed corporation fraud, all these advises are put forward from the view of banks and capital market supervisors.