Research On Financial Services Risk Management Of Rural Commercial Bank

With the soaring household disposable income and deepened financial reform of the interest rate market, rural commercial banks in China are getting involved in financial services and digging its potential these years. Compared with state-owned banks and joint-stock commercial banks, rural commercial banks in China have shorter developing time in financial services and weaker risk control abilities. Therefore, this study on risk management of financial services in rural commercial banks aims at providing some reference to the enhancement of financial services risk control ability for Chinese rural financial institutions.This paper firstly reviews the related academic literature on Chinese financial services and introduces the development situation of rural financial institutions’ financial services in China and then lay emphasis upon the case study on risk control of the financial services in Z rural commercial bank. In the case study, it begins with identifying the risks in financial services of Z rural commercial bank. Then, I dig up its outward manifestation of the deficiencies in risk control on the financial services and make a causality analysis to find out its internal reasons. On this basis, I emphatically analyze the inadequate risk control framework of financial services, the core internal reason, through the enterprise risk management theory.At last, corresponding proposals are made to financial services risk prevention for Z rural commercial bank based on the former case study. The most important suggestions are about how to improve the risk control framework of financial services from the perspective of role clarity, comprehensive and validity. Besides, it can also use third-party investigations methods as a supplement to strengthening the effective control of the risk control system.