Study On Financial Risk Assessment Of Chinese Listed Commercial Banks

With the recovery of the global economy,financial openness and marketization have become mainstream trends,which has caused China's listed commercial banks to face increasing external shocks in the development process,and the corresponding financial risks have also increased.At the same time,China is currently in a period of economic transformation.In the context of internal and external troubles,how to strengthen the bank's financial risk response ability is the top priority of listed commercial banks.This paper takes the financial risk evaluation system of listed commercial banks in China as the research object,builds the financial risk evaluation system of listed commercial banks by means of factor analysis,and effectively measures the financial risk level of 16 listed commercial banks.Policy recommendations for listed commercial banks to improve their financial risk response capabilities.First,combined with the basic theory of financial risk assessment of listed commercial banks,the author compares and screens many financial risks faced by listed commercial banks in China at the present stage,and concludes that capital risk,management risk and profitability risk are faced by listed commercial banks in China.The main financial risks.In addition,liquidity risk and asset quality risk cannot be ignored.The causes of financial risks are problems such as imperfect internal environment,imperfect accounting internal control system and information asymmetry.Commercial banks in order to manage their own financial risks should be done: First,to ensure a certain degree of capital adequacy;Second,to maintain appropriate liquidity;Third,to ensure good asset quality;Fourth,to ensure a reasonable profitability;Fifth,with Good growth potential.Therefore,this paper selects five financial risk evaluation indicators-capital adequacy,liquidity,asset quality,profitability and growth,and constructs a financial risk evaluation index system for commercial banks.Five major factors,representing the capital adequacy index,asset quality index,liquidity index,profitability index and growth Sexual indicators,are in the formula.Secondly,this paper applies the constructed financial risk evaluation system to compare and analyze the financial risk control ability of our country's commercial banks.The result shows that: ICBC ranks first in terms of its financial risk control ability,China Merchants Bank ranks second and China Construction Bank ranks third.It can be seen that the financial risk management capabilities of the five state-owned commercial banks are stronger due to the higher level of capital adequacy ratio and stronger liquidity level.The second lowest level of financial risk management is the eight joint-stock commercial banks,but their respective situations are different.China Merchants Bank has shown a strong ability to manage and control financial risks because of the outstanding retail business of China Merchants Bank.Industrial Bank,Minsheng Bank,Ping An The bank's financial risk control ability is weaker because of its more aggressive business model.The bottom line of the financial risk management rankings is the three City Commercial Banks,due to the smaller asset size and lower liquidity and asset adequacy ratio.Therefore,this paper puts forward corresponding countermeasures and suggestions for listed commercial banks to guard against financial risks: First of all,through the improvement of capital adequacy,improve the quality of assets,improve asset allocation,reduce bank operating costs,increase efficiency and other means to achieve the listed commercial bank's internal risk management,and enhance its ability to prevent risks;Second,we should improve the financial Risk assessment system,improve the risk prevention mechanism;Thirdly,risk prevention should be strengthened by setting up the incentive mechanism,strengthening the risk training and introducing professional talents from the awareness of employee risk prevention and corporate culture construction.Afterwards,the implementation of the Product Innovation Code.By combing past financial product design experiences and setting specific risk prevention and control measures according to the specific links,the source control of potential risks of financial innovation can be realized.Finally,by designing the characteristic liquidity monitoring indicators in line with the business conditions of commercial banks,In view of the flexible adjustment of liquidity safety redundancy and the enhancement of liquidity awareness among commercial banks in a given period,the liquidity management of commercial banks was strengthened to ensure rapid and efficient turnover of their funds.