Research On Financial Risk Management Of Commercial Banks

With the reform of the whole financial system and the advance of the market system,the development of many Banks in China has made great progress and great changes.In recent years,through various measures such as shareholding reform and financial restructuring,the overall operating pressure of commercial Banks in China has been released accordingly.Faced with the increasingly fierce market competition,commercial Banks have raised the business idea from a single focus to the direction of scale and quality.Despite the high performance on the road to business,it cannot be ignored that various financial risks remain.Both in practice and in academic circles,the financial risk management of commercial Banks has been paid more and more attention.In this paper,the current situation of commercial Banks in China and the current situation of financial risk management are expounded in detail.Specific from domestic commercial Banks and a number of basic data,this paper focus on combining its business types to analyze its control condition,by assets,liabilities,profits and losses,non-performing loans,overdue loans and banking to cut a few kinds of assessment index,and further refinement of explore all aspects of the J sub-branch financial risk control.Summarize the different evaluation systems and models,analyze and summarize the advantages and disadvantages of each,build a model on this basis,and build an evaluation system.Is given priority to with analytic hierarchy process(ahp),set up the liquidity,profitability,asset quality,growth ability and capital adequacy five financial risk considerations direction,respectively,set up the LDR,liquidity ratio,capital ratios,return on net assets,total assets net profit margin,net profit margins,cost income ratio and non-performing loan ratio,provision coverage,loan provisioning rate,operating income growth rate,net profit growth rate,capital adequacy ratio and core capital adequacy ratio,tier 1 capital ratio,core tier 1 capital ratio,a total of 16 concrete financial risk evaluation index.The weight of each index was measured by questionnaire survey.To J sub-branch of agricultural bank of China as an example of case analysis,combined with its operating conditions were combined with the research,and for J branch of agricultural bank of China in the case of financial risk management related Suggestions.Taking the financial data of J branch in 2015 and 2016 into the established model,taking the score of financial risk assessment as the basis and making a comprehensive evaluation on the financial riskmanagement status of J sub-branch.Commercial Banks should form a financial risk warning system that can identify risks,detect risks,measure risks,deal with risks and evaluate risks.Will actually use the actual operation link,the better service commercial bank the prudent operation.