Research On Risk Management Of China's Commercial Banks Based On VaR Model

China's commercial banks on the one hand to provide financial services for individuals and businesses,on the other hand is also an active participant in the financial market,the transaction of financial products.So risk exists in every part of the business.At present the business risk control is more and more attention,including the use of VaR application at home and abroad widely recognized,the commercial bank management using VaR as a risk management measure and is conducive to resolve the bank risk effectively,is conducive to the relevant data from the measurement,to control the risk in a controllable range.At present,China's commercial bank risk management concepts and technology and other aspects of the international counterparts than there are obvious gaps,such as ignoring the risk control or costly excessive control.Chinese commercial banks using VaR risk management concept,can help Chinese commercial banks from the traditional business driven risk management to gradually change,reduce the commercial bank China and the international level of the same industry,reducing the gap.Based on the importance of risk management of commercial bank on the illustration of the basic theory and method of risk management in commercial banks,and China current research on risk management,introduces the most common risk facing the commercial credit risk,operational risk,market risk.According to the situation of Chinese commercial bank at present,according to the VaR model,the three kinds of risks are studied based on the VaR model.From a single simple model to the confidence level VaR model of single factors under the risk reserve fund and venture capital,and then study the effect of multiple factors,multi cycle under the condition of the risk reserve fund and venture capital,provide a good model for risk management of commercial banks on the Chinese.Based on the VaR risk management model,an example analysis of the advantages and disadvantages of China's commercial bank risk management,and finally to the risk management of China's commercial banks.China's commercial banks use this model to combine their own banking risk management model and then set up a comprehensive risk management model for their own.