Research On Risk Management Of ZX Bank Financial Business

In recent years,as interest rate marketization reform is constantly advancing in our country,the financial situation changes rapidly at domestic and abroad.And the traditional profit model of commercial banks in our country,focusing on the interest spread between deposits and loans,has been largely impacted.At the same time,the proportion of interbank assets and debts in commercial banks' balance sheet shows a overall rising trend.After 2010,as a result of rapid economic growth in China,commercial banks are facing the situation of increasing external financing needs year by year and there is a huge space for the rapid development of its business.Meanwhile,regulatory policy is tightened and regulatory measures are strengthened.The commercial banks will achieve rapid growth only if they innovate their financial products and business models.Accordingly,interbank business gets the attention of banks because of its low requirements for capital and high returns.Between 2011 and 2016,interbank assets and debts were both growing rapidly in commercial banks.But the risks of interbank business were greater than other traditonal banking business,especially for joint-stock banks and some small and medium banks.These banks packed their off-balance-sheet through various channels,using the operation of repos and reverse repos for assets trust,and commercial bills for example,which helped the banks to bypass the regulatory indexes such as capital adequacy,loan-to-deposit ratio,etc.In addition,the commercial banks' interbank business had highly leveraged business operation mode,which made the business chain extended.Under the linkage characteristics of interbank financing,the capital investment is covered up by the above mentioned packaging,so once small scale of non-performing assets and debt default appear,they could cause large risks around the financial system.This paper described the interbank business of ZX bank,analyzed the risks ZX bank faces in its interbank business and the corresponding risk management situation,found the existing problems in the staff assess,system process,operation compliance,performance assessment,and put forward solutions for these problems.This researchaimed to prevent and control the risks in the interbank business.Moreover,as the large shareholding commercial bank in China,ZX bank's scale is smaller than the five big state-owned banks,but ranks the first place in the joint-stock banks.Its operating mechanism is more flexible compared with the five big state-owned banks,and it belongs to the "small bank in big banks,big bank in small banks".So it may reflect the characteristics of commercial banks' interbank business development from different sides to choose ZX bank as the research object in China.Therefore,this paper took ZX bank as an example,brought forward the problems of our country commercial banks' interbank business development,and put forward the risk prevention measures for interbank business.This research is of great significance to the healthy and stable development of commercial banks' interbank business.