Research On The Financical Risk System Of City Commercial Bank

With the development of market economy and deep reform of commercial banks, commercial banks management have moved from the "asset-centric business" and "deposit as the center" to the "financial efficiency". This requires the bank policy-makers to improve financial efficiency as the goal to coordinate the work of promoting the bank, and other financial management also requires a systematic way which can reflect the bank’s financial efficiency、operations and management. At present, the commercial banks’control in financial risk management practice seriously lag behind the needs of the banking. Comprehensive system information can not reflect the bank’s position which can lead to the presence of a Chinese Commercial Bank’s financial risk. To a certain extent, this caused the risk of China’s banks more intensify. In view of the background and causes, this paper takes Wuhan Commercial Bank as an example to research and analyze. To meet the leading position of the central economic promotion and development, Wuhan commercial banks need financial risk control system to respond to a comprehensive bank risk monitoring and reduce the risk effect. Empirical method with commercial banks in China financial risk control system has strong practical significance.This article takes from the commercial presence of financial risk in China, and analyzes the financial risks of Chinese commercial banks. From the research, commercial banks’financial risks in China include:Capital risk, asset quality risk, interest rate and exchange rate risk, liquidity risk and legal risk. These risks have their own reasons for existence. Clarifying the reasons for the formation of these risks is the basis of risk prevention. On this basis, the paper establishes financial risk control system of the commercial banks. Firstly, commercial banks in China are analyzed to establish the financial risk control system and the premise of the need to clear the way to establish risk control system. Secondly, select the financial indicators and indicators of risk factors. It is the focus of risk control system setting up. In this process, the various indicators to determine the scope of risk control are designed, and finally come to score and classify. This is mainly four categories of indicators, including indicators of capital adequacy, liquidity adequacy index, safety index of assets, income and reasonable indicators. Finally, all indicators are weighted to seek final score, from which we can classify the level of risk. Finally, this paper takes Wuhan Commercial Bank as an example in empirical study. According to previous research results, this paper gives some of the attention problems in the commercial bank’s financial risk control system application. Expecting this conclusion can provide some practical advice to control the financial risk for China’s commercial banks...