Operating Risk Analysis On The Asset Custody Of Private Equity In Domestic Commercial Banks

With the growth of Chinese economy and financial industry,Private Equity(PE)has developed greatly and the asset custody of Private Equity in commercial banks has emerged also.The custody can bring not only intermediate business income,but also huge deposits,so banks really prefer custody transaction.Although compared with the traditional transactions the risk is low,the risk consideration cannot be ignored.As the personal fortune's increase,the basic bank financing cannot satisfy the investors.PE becomes a good way for investment.The proportion of private equity fund is the highest.For the sake of protecting PE investors' interest,the custodian bank should take the duty for supervision and avoid the financial risk and also the loss caused and make a contribution to financial industry development.In the paper,the development status of PE fund and the custody are introduced firstly.And then the bank duty of custody has stated and the operational risk has been analyzed.As the case analysis method and literature research method,the risk and the preventive measures has been showed.Although compared with developed countries,Chinese PE and the bank custody started later than them,ours developed rapidly.Besides,we need to recognize and avoid the risk.