Graham-Kinney Formula And Analytic Hierarchy Process Risk Evaluation System Of Commercial Banks

Since the2008financial crisis, Merrill Lynch, Lehman Brothers and other international investment companies already have filed for bankruptcy protection or simply declared bankruptcy, Goldman Sachs and other investment banks converted to refocus the role of traditional commercial banking, edge restraint, Citigroup’s stock price continued to fall, the nation and even the world economic situation and remains grim, long and difficult recovery process. This series of financial shocks have on the development of China’s financial industry has brought unprecedented challenges, coupled with China’s financial market liberalization, market interest rates and foreign currency exchange rate mechanism reform of factors, the risks faced by domestic financial institutions increasingly complex and confusing, the situation is very complex and difficult to manage. Therefore, the risk of commercial banks in the correct analysis and evaluation, establishment of commercial bank risk evaluation system and emergency response system, it has become very urgent and important. But now, the evaluation of commercial banks risk prediction and analysis system is still relatively fragmented, and the lack of a uniform evaluation system and universally accepted norms. In this case, the paper select a "AHP" and " Graham-Kinney Formula" portfolio model, select part of domestic joint-stock commercial banks as a case study of the script. The main contents include:China’s commercial banks based on their performance in the form of risk, the use of the Graham-Kinney Formula and Analytic Hierarchy Process (AHP) to select the factors needed for risk assessment system, and establish a complete, accurate and proven business bank risk evaluation system, while various risks derived by constructing models of the impact of China’s commercial banks, and ultimately make relevant policy recommendations. In this study, to establish goals, design ideas, concepts principles, models and methods of evaluation issues such risk evaluation index system of commercial banks conducted exploratory discussions have reached the risks of commercial banks ways to measure improvement goals.