Research On Reputation Risk Management Of Commercial Banks

In the process of economic globalization,financial institutions play a leading role.China’s banking industry has quickened its pace of going out,set up foreign branches,share-holding and other commercial banks to expand;some large state-owned banks have become important banks in the global system and play a"stabilizer"role in the global banking industry;in this situation,the reputation risk of banking industry has gone abroad and related to the whole world.In recent years,due to the slowdown of economic growth,the withdrawal of rescue policy and the adjustment of economic structure,the default risk of financial products and trust business in the banking industry has gradually emerged.More and more negative media reports or negative evaluations on the banking industry have been made,and banking institutions are facing serious reputation risk.The reputation risk of commercial banks is the risk that the stakeholders make negative comments on commercial banks and have negative effects on the operation of commercial banks and the developmentof customers.Good reputation is the intangible asset of commercial bank development.It can greatly boost market confidence,win the trust and support of the public,and then affect the bank’s operating performance,market value and overall competitiveness.Reputation risk has the characteristics of complexity,diversity,concomitance and derivation,difficulty to measure and harmfulness to theoverall situation.These characteristics bring great difficulties to the risk management of commercial banks.According to Harris-Fombrun’s reputation index system,there are six main factors influencing the reputation risk of commercial banks:working environment,social responsibility,emotional appeal,products and services,company vision and leadership,and financial status.Measuring and identifying the reputation risk of commercial banks can help solve the problem of reputation risk management,but at present,the research on reputation risk is very weak both at home and abroad.The lack of a universal reputation risk measurement standard makes it difficult for commercial banks to improve the ability of preventing and controlling reputation risk through mutual competition in terms of monitoring,identification,early warning and disposal of reputation risk.China’s commercial banks’reputation risk management started relatively late,the concept of reputation risk management is not mature enough.Based on the researchof reputation risk management at home and abroad,and explores what is reputation?What is reputation risk?What are the factors affecting reputation risk?How to measure and identify reputation risk?How to build a measurement model?What are the problems in reputation risk management?development of our commercial banks in theory and practice.According to the basic concept definition basic theory elaboration influencing factor analysis building model empirical analysis discussing the problems in the case putting forward countermeasures.On the basis of domestic and foreign research,combined with case analysis,questionnaire,this paper discusses and analyses the concept of commercial bank reputation risk,reputation risk management theory,factors affecting commercial bank reputation risk,reputation risk measurement and identification,etc.This paper analyses the influencing factors of the reputation risk of Nanning Branch of Agricultural Bank of China,establishes a fuzzy comprehensive evaluation model for the first time with the help of the reputation model and carries out empirical analysis,obtains the weight coefficients of each influencing factor,puts forward the problems existing in the reputation risk management of Nanning Branch of Agricultural Bank of China,and gives solutions to these problems.