Research On Foreign Exchange Business Risk Management Of W City Commercial Bank

Due to uncertain prospects for global economic recovery,unpredictable monetary policies,shocks in the international financial market,and the obvious downward trend of domestic economic growth,the increasingly stringent domestic supervision of th e banking industry,the risks faced by domestic banking industry are becoming more and more complex.At present,for domestic banks,risk management has become the key to survival.Especially for regional city commercial banks,because of their different scale,personnel and management level,foreign exchange risk management is still insufficient compared with international advanced banks and national banks.Foreign exchange risk has increasingly become an important factor affecting the healthy operation of foreign exchange business of banks.Studying the situation of foreign exchange risk prevention is conducive to promoting the application of international advanced risk prevention theory and management measures in practical business,improving the level of foreign exchange risk prevention of small and medium-sized banks in China,and promoting the stable operation of China's banking industry.Based on the theory of risk management,this paper studies the foreign exchange risk management of W City Commercial Bank through literature research,empirical research and qualitative analysis.Through literature research,this paper introduces the basic concepts and types of foreign exchange risk,the theoretical basis of foreign exchange business risk: Basel II,Management Innovation Theory,Foreign Exchange Exposure Analysis Method and Va R Analysis Method.Five main foreign exchange products of W City Commercial Bank are identified: deposit business,loan business,guarantee business,foreign exchange transaction business and international settlement business.It is found that foreign exchange business risks mainly include credit risk,including repeated financing,inconsistent use of loan funds and contract;market risk,including exchange rate risk capital,currency mismatch risk of assets and liabilities,exchange rate expectation accuracy risk;operational risk,including compliance risk,economic risk and narrow background operation risk.Through actual investigation,this paper probes into the current situation of foreign exchange business,foreign exchange risk management and existing problems of W City Commercial Bank,including: weak implementa tion of internal control system;loopholes in internal organization and management;the proportion of foreign exchange business compliance evaluation indicators is too low;the level of risk prevention of branch personnel is insufficient,and the headquarters professionals are insufficient;product design lags behind;exchange rate risk prevention measures lag behind;inte rest rate risk prevention is deadlocked;lack of follow-up examination of agency banks;the right and responsibility of post-loan management are unclear;business system is backward,unable to meet the latest risk prevention requirements;it is difficult to distinguish authenticity from falsity of transaction documents,and there are insufficient means and tools to guard against risks.In view of these risks,the general ideas,system design and relevant suggestions of risk management are put forward.It is suggested to establish and improve the system,standardize employees' behavior,improve their professional quality,and finally establish a risk prevention culture.Based on the current situation and existing problems of commercial banks in our city,this paper points out that its main work is to establish a scientific assessment method,optimize the internal control process of risk management,establish a team of risk management talents,agency banks should continue to pay attention to mechanism,establish a management mechanism adapted to the characteristics of international trade financing risks,improve software and hardware facilities,establish and improve the foreign exchange risk measurement system,and improve risk management technology.