Domestic Firms In The Town Of Prevention And Management Of Marker Risk

With China's interest rate and exchange rate markets to speed up the process, intermediate business of commercial banks in particular, the size of the sheet continues to expand business and asset securitization pilot step by step, China's commercial banks to assets held for trading increased year by year, China can be expected commercial banks will face increasing market risk. China's commercial banks to further improve market risk management is particularly important. The market risk on the current research point of view, mainly for large financial institutions and innovative financial instruments, such as derivative products. Harm from the financial crisis, the main losses are caused by the cutting-edge financial products. However, due to the special nature of China's banking industry, more control by the state, China's current innovation in financial products abroad, or less than, for example, our ongoing derivative products including swaps, forward rate agreements, foreign exchange forwards, etc., but license must apply to derivatives agencies have eligibility, even if participation is limited in size and market counterparties, will not be much business scale, and futures and other businesses involved in most commercial banks even less qualifications. Compared to the state-owned banks and joint-stock banks, city commercial in corporate governance, risk control, late start, in terms of policy or regulatory risks are still some deficiencies. Although most City firms have established a relatively sound risk management system, comprehensive risk management have gradually carried out, but in terms of risk management or segments with advanced hardware and software support on the bank there is not a small gap.The current literature on market risk management a lot more attention to the quantitative methods of research, such as research on the VAR method, even if the content on market risk management for the entire banking sector is also more general terms. The focus of this paper concerns a small town firm in this group, their special status (asset size is relatively small, weak corporate governance, and state-owned banks, joint-stock banks, compared with a full range of gap) to determine its market risk management specificity, this article aims to analyze the domestic banking market risk factors, found in a small town with a domestic firm's market risk management features.