Commercial Bank Retail Business Financial Risk Management Research

In recent years,with the big environment of the economic downturn and asset allocation,cooperate business of Chinese Bank has been hit by shocks,and the increase in demand for investment and financial assets has provided a wide market for retail businesses,while retail capital is low,the advantages of profitability paying attention to retail business.Many banks have proposed a “big retail” strategy,and retail business is entering rapid development.Despite the rapid development of the retail business,our business banks have limited attention to retail business risk management.Risk management can not adapt to the fast-growing retail business,and the financial risk of retail business is exposed.Therefore,research on retail risk management has practical implications.This paper mainly focuses on the risk management of retail business of China Merchants Bank.China Merchants Bank as the pioneer of Chinese retail bank is the first one to focus on the development of retail business,and outs forward “one body with two wings” strategy,that the retail business as the main business,and the company business and interbank business as the two wings.In 2015,sales of China Merchants Bank retail business were growing faster,with pre-tax profits accounting for 50.47 percent of per-tax profits.To be the first commercial bank to earn more than half of retail business.But at the same time as the China Merchants bank's retail business has shown good result,but when credit risk have risen sharply,the risks have been exposed,especially the emergence of a substantial increase in credit risk,cause the decline in the quality of assets,we can see that although the retail business of China Merchants Bank is developing rapidly,the corresponding financial risk management is still not perfect,and it is more representative to analyze the risk management of the retail business.This paper is deeply understanding of the status quo and risk management frameworks in the China Merchants Bank,and found that the existence of China Merchants Bank asset quality decline,the cost of rapid growth caused by the impact of financial risk.With the concept of enterprise risk management in the Basel agreement and China's CBRC risk management index,from the analysis of the retail banking financial risk that some aspects of asset quality risk,profitability,risk,capital risk and liquidity risk.At the risk of asset quality,the retail business of the non-performing loan ratio and risk migration rate were analyzed,we found that the retail business of non-performing loans increased significantly,risk migration greatly,resulting in a decline in the quality of retail loans;in profitability risk,the cost income ratio was analyzed,found that the retail business of asset impairment loss and daily operating expenses increased in effect,profitability;capital risk,capital adequacy ratio and leverage ratio analysis,found China's joint-stock commercial bank capital charge compared with large commercial banks in China are still inadequate;in the liquidity risk of liquidity ratio analysis,found that the liquidity ratio is high,the low utilization efficiency of assets.The research on financial risk of the above,found the reason of the rising of retail business of commercial banks financial risk mainly includes the risk management organization structure is not perfect,the management mechanism of credit is not perfect,the retail business cost management capacity needs to be improved,the retail business and retail business profit structure of a single lack of relevant personnel in these areas.Finally,according to these reasons,the author puts forward some suggestions to improve the financial risk management of China Merchants Bank Retail business.China Merchants Bank as the most outstanding bank retail business in China,the development of the retail business is rapidly,at the same time,financial risk management system also have some problem.in this article,to hopes to arouse the attention of the bank employees to the financial risks of the retail business.And provide some reference to the commercial banks that are developed important retail business in our country.It is also a thin effort to further refine the regulatory system for our banking regulator.