Research On Risk Management Of Bond Investment In Changchun Rural Commercial Bank

Interbank bond market is an important component of China’s bond market. In2013, bond market in our country issued various bonds totaled8.7trillion yuan, anincrease of9.05%year on year. Though interbank bond market in China has beenever developing and perfecting, problems exist in such aspects as the systemconstruction and market structure, which leave hidden hazards in the bank bonds as awhole in the exchange market. Bodies in the exchange market face liquidity,operation, credit, decision-making and other risks in the bond investment business. Atthe same time, systemic risk factors that a single market body cannot control arebecoming more and more serious in the interest rate, inflation, policy and tax. Theexistence of these risks seriously influences the liquidity of bank funds, and result inshortage of funds. Therefore, the enhancement of the risk management level in thebody in the bond investment business becomes an important research subject.Changchun Rural Commercial Bank CO., LTD. is systematically conversed fromChangchun joint sales department of Jilin Provincial Rural Credit Cooperatives, itsloan is relatively small in scale, and the business scope and authority are limited insome way. As the development of the business scale in the financial market is veryrapid, the businesses have become an important source of profits. Among thesebusinesses, bond investment becomes a key business. With the unceasing expansionof bond scale in Changchun Rural Commercial Bank, the question of how to control aseries of risks in the investment process and realize the revenue of bond investmenthas become the first priority of financial market of Changchun Rural Commercial Bank. This paper is divided into four parts, the first part is introduction, whichexpounds mainly on the background, significance, structure and methods of theresearch; in the second part, the status quo of risk management and existing problemsin Changchun Rural Commercial Bank’s bond investment business are analyzed, andthrough going deep into specific bond business cases, the bank found the source ofthe problems, thus laying the foundation for further analysis; on the basis of statusquo analysis above, risk management problems in bond investment of ChangchunRural Commercial Bank are analyzed, macroeconomic and monetary policy, riskmanagement system and the risk management level are found to be influential in thebond investment business. This part also expounds on the above three aspects indetail in combination with the actual situation of Changchun Rural Commercial Bank;as the focus of the paper, the fourth part proposes risk management measures to bondinvestment business of Changchun Rural Commercial Bank on the basis of previousanalysis, including four aspects as follows: optimizing the structure and measurementmeans of the existing investment business, strengthening the quantitative analysis ofinvestment business risks, improving the system of risk management and internalcontrol process, and strengthening the construction of bond investment’s professionalteam. The three aspects cover each link of our bank’s bond investment business, andthrough measures of these aspects, the happening of bond investment risks can beeffectively controlled; the last part is the summary of this paper, which expounds onthe focuses and goals of Changchun Rural Commercial Bank in2014and points outthe direction for its future work.As a local financial institution of rationality, Changchun Rural CommercialBank should learn to find and solve problems in its development. As the mainoperating departments of bond investment business of Changchun Rural CommercialBank, the financial market center should base on the current and look into the future,take a series of measures to expand built-up strength and comb methods for financial market business of Changchun Rural Commercial Bank; to push every cause todevelop better together through cooperation and concerted efforts with variousdepartments. It is believed that in the future the development of bond investmentbusiness will become an important source of profits for Changchun RuralCommercial Bank, and it will constantly inject new power into the development ofChangchun Rural Commercial Bank.