Research On Financial Risk System Of Commercial Banks In China

As security industry of economic development, the banking industry has a leading position in China’s financial system.Therefore the development and wave of banking related to the sustainable development of a region even a country. Financial risk management level evaluation plays a more and more obvious role to commercial bank development.So establishing a bank financial indicators for financial risk evaluation system is necessary.Commercial bank financial evaluation summaries the bank management using financial accounting,financial budget and comprehensive management plan for the implementation of the information.Each bank can clearly see the horizontal of their financial level by establishing a good financial evaluation system.So that they can Improve their management.It also can be used as a listed bank financial risk prediction system components to help themselves find signs of financial deterioration as soon as possible. And it can help themselves understand their own financial situation to reduce the loss caused by the financial risk,then they would be more cautious lending.So they can avoid similar America consequences of the subprime crisis.The government can take the system to understand the financial risk of Listed Banks to make the correct economic decision-making, to avoid the financial risk transfer to the whole national economy system.This paper summarizes and evaluates the literature of domestic and foreign literature research method.Based on the summary induction and academics and regulators for the methods and means of evaluation and prevention of financial risk identification, commercial banks,combined with the economic environment to explore the factors affecting the financial risk of Listed Commercial Bank in China. The commercial bank financial risk theory, summarize the reasons for financial risk of commercial banks occur, determining the characteristics of China’s listed commercial banks. The index of listed commercial bank asset quality, market risk, liquidity risk, profitability and capital adequacy of5categories of scientific,rational screening using the factor analysis method to our country commercial bank’s financial risk comprehensive evaluation and comparative analysis who based on these theoretical framework.At the same time,the bank financial risk control system for statistical analysis of China’s listed, calculate the score and ranking. The results showed that the large state-owned commercial banks to control the level of financial risk on the whole than other listed commercial banks is high, but its stability is better than other listed commercial banks.China’s state-owned listed commercial banks than in the level of capital adequacy, profitability and other listed banks and other banks in asset quality, market risk control is obviously an advantage specific to each financial index.Finally, we put forward the countermeasure and suggestion of the banks in order to it be able to clearly see their own financial management for strengthing their management and operation level.