Financial Risk Analysis For Chengdu JN Branch Bank Of Bank Of China

Commercial banks occupy a pivotal position in the financial markets at present, and people become pay more and more attention to commercial banks. With the development of the market, commercial banks are no longer act as the role of middleman of deposit and loan, and the business of commercial banks are more international and diverse, financial risk is also more complex in the ensuing. Commercial banks are the same as ordinary enterprises, and the purpose of them is profit, at the same time banks are controlled by headquarters, and banks are regulated by regulators.This paper takes one branch of Bank Of China in Chengdu as the real case study, hereinafter referred to as the branch as JN branch, though the understanding in each department in the JN branch bank, as well as data collection of the JN branch bank, and contact with financial risk theory and professional basic knowledge. The financial risk and risk management of JN branch bank are analyzed, and give reasonable suggestions about shortages of JN branch bank. A more profound understanding about specific operation procedure and specific measures for administration of the commercial bank will be built through actual case analysis. In this paper, the financial risk of JN branch bank is analyzed mainly through the internal and external. Internal is the basic situation of JN branch bank, such as capital structure and profitability. In this paper, the capital structure and the profitability of JN branch bank is analyzed mainly though the financial statements and the indicators, and observe whether the capital structure of JN branch bank is stable and the profitability high or low, because capital structure and profitability can directly reflect financial risk. At the same time, JN branch bank is contrasted with headquarters. Observe the difference between JN branch bank and headquarters, and whether the law of development of JN branch bank is conformed to the headquarters, and the improvement in need. External are risk and regulation of headquarters, regulators and the market. The purpose of regulation is control the financial risk. Observe JN branch bank is in line with the external regulation, and the financial risk management of the bank. Finally, come to the conclusion and give the advice on various aspects of JN branch bank.The article is finally come to conclusion, although JN branch bank expands scale on the whole, but there are a lot of shortages and the hidden dangers of the financial risk. The capital structure of JN branch bank is not stable, shareholders’equity ratio is too low, and asset-liability ratio is too high, so the capital structure needs be optimized fundamentally. The profit ability of JN branch bank is not excellent, and JN branch bank earns a profit mainly though the interest between loans and deposits, not only the financial risk is big and the return on the assets is not high, and profits are improved too slowly. In order to reduce financial risk and increase the ability of profit, JN branch bank needs to reduce the dependence on loan business, and to diversify its business, especially the bank middle business and investment business. The bank can satisfy more customers’ requirements in this way. At the same time, optimize all kinds of the business of JN branch bank by considering the risks and profits. And JN branch bank is needed to establish a complete customer management system. Make JN branch bank become better.