An Investigation On The Operational Risk Of The Drafts Of Commercial Banks In A City

The drafts of China firstly developed in 1982.After growing swiftly for decades,the scale of the drafts was very vast,which has been one of the fastest growing business of commercial banks and increasingly prominent in the financial market of China.In fact,the credit risk is low while the operational risk is high,which is the characteristics of the drafts.In recent years,the operational risk has been obvious while many banks facing risking cases of the drafts.On one hand,the corresponding risk control measures could not keep up with the development pace of the drafts,which caused the large number of abusive trading practices.On the other hand,due to the defects of the risk control,which has been the hotbed of the risk of the drafts,the operational risk control could not be ignored.Being a city with diversified financial institution system and lively drafts transaction,A city is representative and influential in China.My article selected all the banking financial institutions of A city for investigating,analyz ed the operational risk of acceptance business,discounting business and collecting business of commercial banks,aiming to improve all the banks' operational risk control of the drafts.By the means of survey,Ivisited several banks,interviewed some bank employees and read literatures for collecting the present situation of the drafts market in A city from 2003 to 2016.My article analyzed the characteristics of the drafts by comparing different organizations,occurrence time,and transaction links,demonstrated the reasons.The internal reasons were that the awareness of the risks was diminishing,the business ideas were wrong,the internal control was weak,the employees' professional quality was low and the level of science and technology was low.The external reasons were that the system of the social credit was imperfect,the exchange of information between the banks wasn't expedited and the drafts intermediary institutions were abounded.Then the article raised the suggestions of improving the operational risk control of the drafts market in A city.The internal suggestions were changing management ideas,perfecting the internal control mechanism,strengthening building of talents team and the infrastructure for science,developing electronic drafts.The external suggestions were perfecting the system of the social credit and the exchange of information.This thesis had two innovative points.Firstly,by the means of surveying all banking institutions of A city,the article analyzed the operational risk of the drafts and raised suggestions,aiming to improve all the banks' operational risk control of the drafts.Secondly,selecting all the banking institutions of A city and analyzing the operational risk of drafts from 2003 to 2016,the conclusion was representative and had realistic guiding meanings...