After The Financial Crisis, China's Listed Banks Refinancing Internal Risk Control Study

With the global financial integration continues to deepen, the world in financial services, financial supervision tend to mutual penetration and mutual cooperation. The global financial industry has become a close and inseparable whole. Since 1990s, in the process of global financial liberalization, innovation and integration, the financial risks become increasingly prominent focus. It is reflected the frequent outbreak of the financial major case and financial crisis in some countries and regions. The financial crisis caused by the United States in 2007 makes people pay more attention to the grim situation of bank risk management and the importance of internal risk control system. Although the listed banks in China have been established the internal risk control system under the relevant framework of the COSO Committee and the Basel Committee. But for the execution of internal control and specific aspects of the implementation of internal risk control procedures are still some problems. Improve internal risk control system as soon as possible will be the focus of China's commercial banks in the future, to improve risk prevention ability and achieve stable operation.Since the financial crisis, the U.S. government implement "quantitative easing" monetary policy, making the global asset price rise, and in 2011 the Chinese economy faces the grim situation of high inflation, commodities price rise. This shows that there are some uncertain factors in external environment, the bank's risks increased. People's Bank of China, on May 18th,2011 raised the deposit from financial institutions of RMB deposit reserve ratio by 0.5%. This is the central bank 11 times since last year raised the deposit reserve ratio, and the first five months are all 0.5% per month. After this increase, the level of the reserve ratio calculation of state-owned banks has reached 21%, the freezing of funds is expected about 370 billion RMB. For the full year, the reserve ratio also continued to increase space for the future, but the frequency will decrease. The changing financial environment exacerbated listed banks in China's internal potential risks. Capital is the basis for all activities of commercial banks. Capital also constitutes the last line of defense against risk in commercial banks. The adequacy capital can help listed banks operate in virtuous cycle, it will be positive for the maintenance of financial order and economic stability. For the initiative of the fierce competition, listed banks of China expanding the scale of bans, the shortage of bank capital has become a restricted banking development criticism. On the other hand, in response to the increasingly stringent regulatory requirements, the listed banks carry out refinancing scheme, intended to expand the scale of capital and improve capital adequacy ratio, weakening the risk. Listed banks increase capital through refinancing, even though it can enhance its capacity of business expansion and resist risks, but the development model of commercial banking sector "credit expansion - capital consumption - refinancing", there is a big bold risks. If the listed banks in the process of refinancing can't take an effective control of internal risk, it will harm the stability of the entire financial system. In the post-crisis era, the strict constraint of capital has become an irreversible trend in the banking sector in the whole world. We must strengthen the listed banks internal risk controls of the refinancing to safeguard the entire financial system security and stability.Therefore, this article intends to study re-financing of listed banks internal risk control problem. This article is divided into five parts:Part I:Introduction. Introduce in post-crisis era, the topics of China's listed banks refinancing internal risk control background, the significance, literature review, the innovation and lack of this article.Part II:Theories of internal risk control of China's listed banks refinancing internal risk control. Introduce relevant concepts and theories of internal control and refinancing, as a later discussion and analysis theoretical guidance. PartⅢ:Analysis of China's listed banks refinancing internal risk control. Through the data collation and qualitative analysis, introduced status of China's listed banks refinance internal risk control, analysis the problems of listed banks internal risk control system.PartⅣ:International comparison and implications of China's listed banks refinancing internal risk control. Introduce listed banks internal risk control system and the development in some developed countries. Analysis of the successful experience of banks in these countries from the control environment, risk assessment, control activities, information and communication, supervision, summarized the Inspiration of China listed banks internal risk control system.PartⅤ:Policy Recommendations of China's listed banks refinancing internal risk control In a comprehensive analysis on the basis of the above sections, set the basic principles to further improve China's listed banks refinance risk control system, propound specific proposals for organizational structure of the listed banks, the internal risk control system and construction of environmental protection.