Study On Cross-Regional Risk Control Strategy Of Ma’anshan Rural Commercial Bank

In June 2008,the China Banking Regulatory Commission promulgated and implemented the Measures for Implementing Administrative Licensing Matters for Rural Small and Medium-sized Financial Institutions,which encouraged rural commercial banks to conduct cross-regional operation,thus formally opening the prelude of cross-regional operation of rural commercial banks.From the practice of cross-regional operation of rural commercial banks,on the one hand,the implementation of cross-regional operation strategy of rural commercial banks does help to expand the scale and create value;on the other hand,cross-regional operation will also bring new development and operation risks to the operation of agricultural commercial banks.The risk of cross-regional development of banking industry has become an important issue to prevent and control financial risks.It is not only a battle to attack hardships,but also a protracted war,which is the focus of this paper。Ma’anshan Rural Commercial Bank,the first rural commercial bank in Anhui Province,took the lead in "going out" and implemented a cross-regional management strategy.Unlike the joint-stock banks,the rural commercial banks have lower scale of assets,higher rate of non-performing assets,and their management system is at a lower stage of development compared with their counterparts.For this reason,the bank successively learns from German IPC technology,carries out cross-regional operation,builds process banks,opens training schools for Sino-German banks,and builds green banks.The risk of cross-regional development of banking industry has become an important issue to prevent and control financial risks.In view of the above problems and requirements,this paper attempts to focus on Ma’anshan Rural Commercial Bank,and take the risks and risk control in cross-regional development as the research object.Through collecting the first-hand information of Ma’anshan Rural Commercial Bank,this paper conducts investigation and research.Combining a large number of studiesand interviews,we explore the cross-regional development risks and risk managements and control of competition strategy.Firstly,this paper introduces the relevant theoretical knowledge of the cross-regional operation of the Agricultural and Commercial Bank,summarizes the risks existing in the current cross-regional operation,and analyses the data of the deposits,loans and risk events of the Ma’anshanRural Commercial Bank.It is found that there are market risks,operational risks and competition risks in the cross-regional operation of the Bank.According to the performance of risk management and control,we can find out the competitive strategies suitable for risk management and control,that is,to build a cross-regional risk management system,to improve the cross-regional risk control ability from market research,training,product positioning and other aspects,and to cultivate cross-regional risk management and control culture.Finally,it gives the relevant theoretical contributions and practical enlightenment,so that agricultural and commercial banks can have healthy and rapid cross-regional development through this strategy.