Research On Financial Risk Of Private Banks In China

Along with the deepening of the reform of China's financial industry, especially the development of diversified structure of Banks, into the private capital of private Banks, gradually occupy more and more important position in the financial industry. The development of the private Banks can introduce competition mechanism, break the monopoly pattern, promote the efficiency of the Banks, in turn, promote the development of China's banking industry. At present, our country has formed in stateowed commercial Banks and city commercial Banks as the main body of the banking system. The development of private bank can broaden the scope of business, expand the service object, compensate for the loss of state-owned commercial Banks, form the competition on the market and customers. So how are the development of private Banks, will face what are the risks in the process of development, which causes the risk; Will eventually be affect their financial situation and financial risk. Facing these problems, the private bank how to deal with, what to do, these are problems that need to be solved in the process of development of private Banks.The writer bases on the multitudinous scholar's research, put forward the definition of financial risk and private Banks, which is suitable for this paper. Then the paper bases on the relative theory of bank risk at the same time, and the financial risk of private bank research methods at home and abroad for reference, the writer study risks which Banks will face, in view of the risks and problems at the same time, analysis its causes; Then the principal component factor analysis method was adopted to some private Banks in China, carries on the empirical research of financial risks, and according to the financial index and weight coefficient to determine the weight of the principal component, eventually establish a comprehensive assessment. Through the empirical analysis, found that private Banks in China have business problems, such as unbalanced development, managers should strengthen the internal management and improve the external supervision. Also Minsheng bank in China, for example, based on the financial data from 2010 to 2014, involved in 19 financial indicators, establish the financial risk of led warning figure, it is concluded that Minsheng bank, the first joint-stock private Banks, in the near future there will not be a financial crisis, but the managers still need to strengthen the management of bad assets, reduce the credit risk, and guard against financial risk.The first part is divided into the first and second chapters, the first chapter mainly elaborates the selected topic background, research significance, research contents, methods and innovation; The second chapter focuses on the definition of private banks and financial risk, based on the relative management theory of bank risk at the same time, combining the domestic and foreign literature, a comprehensive review of private bank risk management, the financial risks of commercial Banks, and early warning theory knowledge.The second part is the third chapter, this paper analyses the current situation of the development of private bank, from the number of the proportion of private capital, private Banks scale and development issues, at the same time studies the main content of the bank's financial risk in detail, and combines the lack of internal factors and external environment to study the financial risk of the bank.The third part is divided into the fourth, fifth, sixth chapter, the fourth chapter is based on the principal component factor analysis method to establish the comprehensive assessment, the fifth chapter with Minsheng bank as an example to establish the financial risk of led warning figure, the two chapter is the empirical part, the sixth chapter bases on the empirical results, then puts forward effective feasible measures and suggestions, and points out the insufficient of this paper and the future prospects.