Operating Risk Research Of The Central And West City Commercial Banks

China’s city commercial banks are evolved, from urban credit cooperatives at the planned economy ages. City commercial banks have been established like mushroomed since the first urban credit cooperatives reorganization in1995. City commercial banks have become the banking industry’s "third pole". To promote the local economic development and to solve the financing problems of SMEs, city commercial banks have played a key role. The CPC Central Committee put forward the Western Development Strategy in the year of2000, the Midwest city commercial banks played an irreplaceable role during this process. The city commercial banks have also made some achievements since their establishment. They are moving towards a process of development and growth and have a bright future. However, financial turmoil and the banking crisis always peek into a serious blow the banking industry. The central and west city-commercial banks are easily to be battered by adverse environment because of its the lower capital ratio and profitability, the weakness of risk consciousness and less technology and so on. In the face of crisis the central and west city commercial banks suffered losses may be greater, or even go bankrupt and be shut down.As a newborn in the wave of financial reform in China, the development of city commercial banks in China is still in its infancy. There is a considerable gap from big size banks in the field of risk management and corporate governance. Together with the limited statistics and inadequate disclosure of information, the amount of information for the assessment of the entire operational risk systems is not enough. The traditional methods of assessment about city commercial banks operational risk systems are no longer feasible. So its conclusions reliability is questionable. Therefore, a reasonable evaluation model is particularly important. With the development of financial deepening in China, the theory of financial risks, especially about which banking industry faced a variety of risk, has been a great development. Recent years, gray system theory, which is a good programmer to solve the problem of the central and west city commercial banks about operational risk evaluation model, overcome data Grayscale characteristics.The article mainly uses quantitative analysis method, combining knowledge of financial accounting and Grey Relational Analysis and commercial bank operational risk management theory. Using theory and empirical research comprehensive evaluate operational risk of Chinese central and western city commercial banks. To explore the different risk management models appropriately, different models are compared from different aspects. Then obtaining the adoption of the gray correlation analysis is reasonable. The midwest city commercial banks in China, with a lot of graphics form, are deeply concrete analysis. Based on combination empirical analysis and normative analysis, value judgment criteria are proposed.There are two innovations in this article. At first, using of gray system theory to overcome the sample and data typical distribution of defects, to conduct a comprehensive evaluation the risk of city commercial banks distributed China’s central and western region. Secondly, it combines Gray relational clustering method, factor analysis and correlation analysis combined. Using Gray relational clustering method to exclude similarity index and streamline indicators; Using factor analysis method to calculate index weight overcome the subjectivity of the Delphi method; Using gray correlation analysis to determine the sort of gray relational grade given sample bank. It makes that evaluation results are more reliable than ever.