Research On Risk Management Ability Of China's Commercial Banks

As the most important financial institution,commercial banks initiative or passively take a variety of risks,so that risk management is rather important for its own development.Since establishment,commercial banks are always with risks.Efficient management of risk can reduce the loss,provide pricing basis and obtain long-term benefits for banks,which is helpful for commercial banks to obtain competitive advantage in industries.Therefore,how to conduct effective risk management and correctly identify,evaluate,effectively manage and control the risks directly determines the future of commercial banks,whether success or fail.Based on the previous studies,this article built a risk management ability evaluation system of commercial banks.On this basis,it took the related data from the annual report of 16 listed banks from 2010 to 2015 as an example,the factor analysis method as a model,SPSS 19.0 software as analyzing tool,and found five key factors having effect on risk management level of commercial banks.It also analyzed the ability of risk management of listed commercial banks in our country by quantitative analysis of key factors.The main research conclusion of the passage are as follows:One is that operational efficiency risk,profitability risk,credit risk,capital risk and liquidity risk are five management factors affecting the risk management ability of listed commercial banks in our country.Two is that through horizontal comparison,it found that the risk management level of state-owned listed commercial banks was better than that of joint-stock listed commercial banks;and that the risk management level of joint-stock listed commercial banks was better than that of listed city commercial banks.Three is that through vertical contrast,it found that in the case of a slowdown in GDP growth and deterioration of the operating environment,whether state-owned commercial banks,joint-stock commercial banks,or listed city commercial banks,their management level of risk all had been reduced.Overall,the risk of commercial banks of our country are in a controllable state.And the conclusion of the passage has a certain applicability for both commercial banks and investors,which is also worth referring for related researchers to do research and prediction of the risk situation of the listed commercial banks in our country.