Research On The Effect Of Chinese Listed Bank Performance Of Financial Derivatives Transactions

Since the 1970s, with its leveraged derivatives, flexibility, intertemporal trading characteristics such as risk aversion domestic banking sector, an important means of hedging. However, the occurrence of the 2008 global financial crisis, but also to a profound understanding of the world’s financial institutions to high-risk financial derivatives. In the current financial institutions continue to strengthen risk management background, financial derivatives has become a hot topic in academia. "CPC Central Committee on deepening reform of the overall number of major issues" Eighteen by the Third Plenary Session of the proposed reform of the financial sector to "improve the financial market system" requirements, which also focused to encourage financial innovation, abundant levels of financial market and the product, which highlights the current particularly important practical significance to study the domestic banking financial derivatives trading operations on financial derivatives.In this paper, theoretical research and related financial derivatives trading status quo. based on the data of the selected panel 2008-2012 15 listed banks in the sample, using EXCEL2003, Eviews6.0 and analysis software SPSS 19.0 by descriptive statistical analysis, using panel data fixed effects model, respectively, from the level of risk and profitability (including financial level and value level) empirical study of financial derivatives trading business to China’s overall listed banks, including state-owned listed banks and joint-stock banks and city listed two impact. The empirical results show that:derivatives trading on China’s listed banks as a whole did not produce the desired effect of hedging, but the financial aspects of performance and value levels were significantly reflected. From the perspective of the listed banks, state-owned listed banks, have some risk hedging effect, but a weak effect on the financial aspects of performance, the impact on the value of the level of performance is not significant; while the joint-stock banks and city listed in the risk impact level was not significant, but the level of financial performance and value levels have a certain influence. From the perspective of financial derivatives, currency class of derivatives, its impact on the level of risk is not significant, but the financial aspects of the performance has a significant negative effect on the value of the level of performance has a certain positive effect; class on interest rates derivatives, its impact on the level of risk is not significant, but on the financial performance of a certain level of positive effect on the value of the level of performance has some negative effects; against other derivatives, its only on the level of risk China’s listed banks have some risk hedging effect on the profitability and performance of the bank had no significant effect. Based on the theoretical analysis and empirical results of the status quo, to enhance derivatives trading performance of the business of banks listed on China’s influence, we propose a change in management philosophy, deepen financial reform, strengthen the awareness of independent innovation, and increase efforts to train personnel policies recommendations.