Empirical Research On Inlfuence Factors Of Reputation Risk Of The Commercial Banks In China

Reputational risk is classified as commercial banks are required to properlydeal with the risk of one of the eight，in the current image of the commercialbanks paid great attention to the value of competitive era，to prevent and defusethe risk of commercial bank’s reputation is more important. In this paper, the factorsof the effect of reputation risk are divided into internal factors and external factors.The internal factor is the factors of the bank itself can solve, external factors is thefactors of the bank itself can not solve. In the analysis of internal factors, using theBank of China, China Construction Bank, China Minsheng Bank, China Citic Bankand China Merchants Bank historical time series data, this article makes an empiricalanalysis of the Commercial bank’s reputation risk. First , internal risk of bankgenerally reflected in the profitability of bank (profitability is higher, the reputationrisk is lower), then analysis all internal factors of the impact of reputation risk, thefinal empirical description of these factors effect on profitability of bank, that is theseinternal factors on the impact of reputation risk,then give a comparative analysis. Inthis article using earlier academic reputation risk factors affecting banks down to eightfactors, according to the eight indicators to make empirical analysis of the factors, andthen extracted two factors based on empirical results, one is employee quality namelydegree ratio and the other one is management namely normal loan rate. The basicconclusion is: the main influencing factor of Bank reputation risk is the quality ofstaff and normal loan rates for different banks, different degrees of these two factors.In State - owned commercial banks, degree scale, the total number of branch, thenormal loan percentage rate and capital mobility have a significant impact on Bankreputation risk; In the joint - stock commercial bank, degree proportional impact onBank reputation risk significantly, branch of the total impact on Bank reputation riskis not significant, the normal ratio of loans and capital mobility on reputation risk ofvarying according to the banks. Therefore, banks should make measures according totheir own situation.As for the external factors on the impact of reputation risk, further analyzes thebank reputation risk factors based on the financial ecological environment. Forexample, property right system, legal system, the intervention of the government,regulatory authorities, perfect intermediary credit evaluation system and other external factors, these are also affecting the reputation risk factors of the banks ofchina. This comprehensive analysis of the impact of bank reputation risk to allinternal and external factors, the combination of these factors, gives out the respectivepolicy recommendations of the internal and external factors. Internal policyrecommendations are mainly to improve the quality of staff and improve the normalloan rate, the reasonable internal structure of credit, establish the early warningmechanism of the reputation risk and so on. External policy recommendations are toperfect market mechanism and credit system, build up a good financial ecologicalenvironment, increase the supervision departments and supervision and so on.