Research On L Bank Financial Risk Management

The outbreak of novel coronavirus pneumonia epidemic in early 2020 has caused instability in the global financial market.Economic development is facing major uncertainties.Business expansion and services of domestic and foreign commercial banks have been hindered.Credit demand has continued to decline.And risk exposure has accelerated.The commercial banks especially local commercial banks like L Bank need actively transformation in order to adapt to the new domestic and foreign economic norms requires.How to seize opportunities during economic turmoil to meet challenges continuously improve financial risk management capabilities.This article will analyze L Bank as a research object.L Bank,as a local commercial bank,is small and mainly serving the local economy.It has limited business scope and ranks 71 st in the "2019 China Banking Top 100 List".At the bottom of the ranking,if you want to develop better in a complex economic environment,you need to improve your financial risk management capabilities.The paper is first introduces the research background,research purpose and significance of the paper.Then we sorts out the domestic and foreign research results on the identify,evaluation and risk prevention countermeasures of financial risk of commercial banks.Secondly,it elaborates the definition of financial risk of commercial banks,the content of financial risk management of commercial banks and related basic management theories.Then we introduce the identification and evaluation methods of commercial banks.Thirdly,the basic situation,main business scope,operation management and basic financial status of L Bank are introduced.We identify and analyze the financial risk from liquidity,profitability,capital adequacy,asset quality and management level from various aspects.And use CAMEL risk assessment from these five perspectives,13 financial indicators were selected to construct a financial risk evaluation indicator system suitable for L Bank.The entropy method was used to determine the proportion of each financial indicator and evaluate the financial risk.Finally,according to the results of L Bank's financial risk evaluation we put forward risk countermeasures.Through the research in this article,I hope to help L Bank improve its ability to cope with financial risks,and also provide a reference for other commercial banks similar to L Bank in the management of financial risks.