Research On Financial Risk Management Of N City Commercial Bank

Finance is the core of the modern economy.As an important part of China's financial system,the banking industry plays a significant role in promoting China's economic development.In recent years,China's macro economy has generally improved,and the national economic growth rate is in the forefront of the world's major economies.The sustained growth of GDP,the transformation and upgrading of the economic structure,the rapid development of emerging industries,and the growth of disposable wealth of residents are the commercial banks.Development has provided a good external environment to promote the steady and rapid development of China's banking industry;but at the same time,China's economy has entered a "new normal",in the period of structural transformation,the economic growth slowed down,and the interest rate marketization process accelerated.Both have brought some pressure on the growth of China's banking industry.As an important part of the banking system,city commercial banks are important regional banks that promote local economic and social development.Such banks are more constrained by regional restrictions,and there is a big gap between them and large joint-stock commercial banks in terms of financial risk management.Based on the analysis of the current financial risks of commercial banks at home and abroad and the research on related financial risk management theories,this paper selects commercial banks in n cities as the research object,and uses the financial ratio analysis method to identify and analyze the financial risks existing in the five aspects of asset quality,capital adequacy,liquidity,profitability and management level under the camel risk evaluation system.At the same time,the camel risk evaluation method is used to evaluate the financial risks of commercial banks in n city.Based on "camel risk evaluation system",the corresponding financial indicators are selected to construct the financial risk evaluation system of n city commercial banks.the entropy weight assignment method is used to assign corresponding weights to each indicator,reasonably estimate the average level of the banking industry,and then judge the financial risk level of n city commercial banks.Through calculation,this paper concludes that the comprehensive financial risk rating of N city commercial banks is “poor”,that is,the overall financial risk status is lower than other banks in a specific industry,the financial risks are higher,the assets are in general,and measures are needed.reduce risk.Based on the identification and evaluation of financial risks of N city commercial banks,it is found that N city commercial banks mainly have the following financial risks: excessive dependence on traditional credit business,lack of profitability,high asset concentration risk,high interest rate The savings caused the bank's capital adequacy,the liquidity risk caused by mismatches in the maturity of assets and liabilities,and the risks of excessive bank liquidity and management costs.From the aspects of strengthening capital liquidity,improving capital adequacy ratio,strengthening asset quality control,improving profitability and management level,this paper proposes countermeasures to improve the financial risk management level of N city commercial banks.