Study On The Financial Risk Prevention Of China's Private Banks

Establishment of private banks is an important part of Chinese financial reform. The establishment of private banks will offer specialized, differentiated and convenient financing channels for local small and medium-sized enterprises. It is an effective measure that will help solve the financing difficulties met by the small businesses, thus achieving the structural optimization of competitive financial system. However, as a new reform initiation, the establishment of private banks is also faced with serious challenges. In order to promote the sound development of private banks, and to maintain the stability of the financial market, here studies the effective prevention and control of financial risks of private banks.This paper is based on Max's bank capital and financial risks theory, western economic financial risk management theory and "the Basel ?". Firstly, the paper defines the related concept and characteristics of private banks and then reveals the advantages and disadvantages of private banks. Secondly here describes the experimental results of private banks, analyzes the financial risks and the causes of financial risks of private banks from the perspective of systemic risks and non-systemic risks. Then, study the successful experiences of the American community banks, and summarize the failure lessons of the domestic small banks such as Hainan Development Bank, in order to help steady operation of private banks. Finally this paper puts forward the proposal of optimizing the financial markets environment, enhancing the external supervision system and strengthening self-construction, to defend finance risks effectively.