Research On Risk Evaluation And Control Of Commercial Banks In China

Since the 18th National Congress of the Communist Party of China,China has adapted to lead the new normal of economic development,promote and deepen the structural reform of the financial supply side,and the financial industry has maintained rapid development and achieved historic achievements.In China's financial system,commercial banks,as enterprises that manage risks,occupy a dominant position,and implementing scientific and effective risk supervision on them is not only related to their own survival,but also affects the stability of the entire national financial system.For more than 100 years,commercial banks have faced the threat of financial crisis at different stages.However,with the joint efforts of governments and international banking associations,risk assessment and prevention measures have been improved in the process of crisis resolution.At the same time,in the current complex domestic and foreign financial situation,how to innovate the risk evaluation methods of commercial banks,timely discover and effectively deal with bank risks,not only related to the standard operation of commercial banks,but also related to the high-quality development of the financial industry.This paper summarizes the connotation,classification and measurement of commercial bank risk by consulting a large amount of literature,introduces the relevant theories of risk assessment and prevention of commercial banks,discusses the basic principles,advantages and disadvantages of factor analysis and entropy method,and puts forward commercial bank risk evaluation model based on factor analysis and improved entropy weight method.The risk index evaluation system was constructed by combining the regulatory standards of financial regulatory institutions and the research results of experts and scholars,and the risk level of 26 A-share listed banks in 2015-2017 was studied by using improved methods.The empirical results show that the overall risk of A-share listed banks is lower,the risk management level of state-owned banks is higher than that of joint-stock banks,and the risk management level of joint-stock banks is higher than that of urban commercial banks.From a single risk perspective,state-owned banks have higher liquidity risk,market and operational risk.In the past three years,the three risk management levels ranked first among all types of banks.The market risk and operational risk of city commercial banks are their management weaknesses.However,its credit risk is better controlled.Finally,based on the evaluation results and the current risk status of commercial banks in China,this paper summarizes the risk management and control strategy,and forecasts the future risk management of banks.