To Analysis The Private Banking Business Risk Management

Private banking business originated in the Swiss around in the16thcentury.At first,the development idea isthat in order to make the rich value of assets.And now the private banking business is not confined to this kind offunction.Private banking business is the most high-end of the banking financing business. Its service object isdifferent from the traditional banking business.Private banking business dedicated to the rich strata and providethem with asset investment management business,the minimum standards for this business is that the investormust be have more than100ten thousand dollars financial assets.Private banking business has deep influence inthe world,with its high profits,attracting mang countries Banks offer private banking division. After the Swissprivate bank was set up,one after another banks set up,such as Citibank, Bank of East Asia, HSBC, ABNAMRO and so on. Private Banking slowly expanded to the whole world.Because the characteristics and the international development trend of China’s economic development,China’s private banking business started late, the Bank of China in2007became the first "eat crab", in Beijingand Shanghai and launched private banking business of the line. Then, the major state-owned banks (ICBC,China Construction Bank, Agricultural Bank of China, Bank) and a number of joint-stock banks (CITIC,China Merchants, livelihood) have launched private banking. In our private banking services to high net worthclients object; services encompassing both the asset value, including financial services, including tax planning,inheritance, travel abroad, children abroad education, art, luxury living and other issues. In the nearly sevenyears of development, China has increased year by year the number of customers of private banking, managingfinancial assets is considerable, has reached16.5trillion.We rejoice in the success of private banking excellence, but also found that the development of China’sprivate banks are also facing many problems, such as inadequate risk management, product design over a single,customer loyalty is not high, the relative lack of professional development model is too vague, service is notperfect and so on. Risk management is the most important of which is imperfect, the main risks faced by privatebanks is operational risk, reputational risk and compliance risk.Therefore, this paper combined with the newBasel II risk management of our private banking business to do a little research, combined with the riskmanagement situation in the first half of2013the bank’s private banking risk management pointed out the problems, and refer to HSBC Private Banking, Private Banking Netherlands explore from both domestic andinternational aspects of how to improve the risk management capabilities of the private banks.In this paper,the first chapter is the introduction part,mainly introduced the research background,purposeand meaning.The second chapter conducted the risk management theory of business bank,at the sametime,conducted the private business a preliminary, including the definition of the risk of private banking,private banking classification, characteristics of private banks and private banks are facing.. The third chapterdescribes how foreign private bank risk management. First, the way HSBC Private Bank ’s business conductsome research, and pointed out the advantages of its existence; followed and then the HSBC Private Bank ’srisk management are introduced; After introduction of HSBC Private Bank, then targeted risk to Dutch privatebank management experience to make a presentation, and finally on how to conduct our private bankingbusiness to make some inspiration. The fourth chapter, I will introduce the current development of China’sprivate banking business, while China Construction Bank as an example to introduce the current situation andproblems of risk management, for now little likelihood of exposure to operational risk, reputational risk is wellcontrolled, compliance risk also controlled at the source. The fifth chapter is the last one I will conducted therisk management requirements to make a suggestion to our private banking risk management. The article pointsout can make recommendations on risk management from five private banks, one of which is the productportfolio diversification, more comprehensive service model, so as to enable private banking customers get tomeet a basic level, increase customer loyalty; second to enhance the quality of training of employees of privatebanking, industry-wide efforts to improve the quality of service, improve the professional quality of employeesonly from the source, the private banking business in order to better carry out; the third is to improve therelevant laws and regulations, so that more regulation effectively, so as to achieve a legal basis; Fourth is tofurther improve the customer information registration system, and the customer market segments, so as toachieve the expansion of the range of private banking; Fifth is to improve internal risk management privatebanking agencies, clearer division of responsibilities.In general, the innovation points of this paper is to combine relevant commercial Banks risk managementtheory, from the aspects of more private banking risk management in our country put forward a little advice, atthe same time, combined with the latest case construction bank points out the present situation of our country’sprivate risk management. So I hope I can through this study, the risk management of the private bankingbusiness in China have some help.