The Research Of Financial Risk Assessment On China’s Listed Commercial Banks

Risk management is consist of risk identification, risk assessment and risk aversion. Risk identification and evaluation seem crucial in eliminating the banking risk management.Building upon the existing research to explore the commercial banking risk management, this paper is focusing on the financial risk. In this research, it is suggested that bank’s financial risk could be broadly classified as follows:asset quality risk, capital risk, liquidity risk, profitability risk and management risk. Analyze the special effects of China’s financial risk mechanism to establish an index system to comprehensively evaluate financial risk of commercial banks. This research adopted factor analysis method, with data being collected through the access of sixteen China’s business banks disclosed financial reports (2008～2012). And use the factor analysis method to calculate the composite score to evaluate and comparatively analyze the banks. The results show that:asset quality risk is the most important factor to affect China’s commercial banks’financial risk. On the whole assets risks of the five country-owned commercial banks were higher than city commercial banks and joint-stock commercial banks. Different types of commercial banks has significant difference in risk management. Along with our country commercial bank focus on the risk management, the risk management ability gradually improved. It is revealed that financial risk of the sixteen China’s business banks was in a neutral state in2012. Some practical implications of banking risk management have been revealed in this research as well.