Research On Risk Control Of Financial Inclusion Of C Bank Suzhou Branch

The bank is an industry that operates risks and its actual gain is risk premium.As a large state-owned bank,C Bank mainly focuses on large infrastructure and medium and large enterprises in the traditional credit area.Such customers or projects have some features,such as the large amount of single loan and low credit risk.Therefore,the bank can get a good risk premium.However,with the gradual decline of the rate of marginal income on fixed assets investment,the enhancement of bargaining power of medium and large enterprises,the increasing competition of interbank market,the liberalization of interest rate and the advancement of disintermediation,the gain of C bank in the traditional credit field is significantly reducing.Faced with the increasing management pressure,C bank begins to turn its strategic vision to the "blue ocean" of financial inclusion.The United Nations defines financial inclusion as a financial system that can effectively and comprehensively serves all social strata and groups.Small and micro enterprises,as the main target group of financial inclusion,are generally characterized by small scale of management,low market position and irregular governance.Many factors cause the high risk of financial inclusion in commercial banks.The loss given default of bank loans is high and the corresponding risk premium is low.For example,in recent years,due to the soaring environmental and labor costs,the deterioration of foreign trade export environment,the adjustment of monetary policy,a large number of small and micro enterprises close down,and the bosses run away.This eventually leads to the concentrated exposure of non-performing loans from small enterprises,so the non-performing rate in the bank is increasing rapidly.On one hand,the external environment changed forces the banks to transform.On the other hand,the financial inclusion serving for small and micro enterprises is blue ocean which is waiting to be exploited.In such a situation,this paper aims to study and analyze the risk control of financial inclusion,which will have great economic significance for commercial banks to develop financial inclusion.The research object of this paper is the financial inclusion of C Bank Suzhou branch.Through the case method and historical data,the article will analyze the risk types and characteristics that commercial banks will face in the development of financial inclusion.The paper will also combine the risk management system and process of C bank and find the weak points and the constraints where the risk occurs.Therefore,the study will come up with some ideas and countermeasures to improve the risk control of financial inclusion of C Bank Suzhou branch according to the related theories and researches.As a consequence,this will help C Bank Suzhou branch to improve risk management ability and promote the sustainable development of financial inclusion.