J Rural Commercial Bank Financial Risk Diagnosis And Control

Under the background of the gradual advancement of China's financial marketization,the competition among domestic commercial banks is becoming increasingly fierce.At the same time,the business model of commercial banks is inherently high-risk,the current economic downturn pressure makes such features even more prominent,thus the financial risks of commercial banks in the business process is also gradually increasing.In addition to the state-owned commercial banks and joint-stock commercial banks that were started earlier in China,rural commercial banks,such as small-scale commercial banks that were restructured from previous rural credit cooperatives,existed.Because the time for the restructuring of the bank is not long,and it is relatively late to start,it has insufficient experience in controlling its own financial risks,so the status quo of financial risk management is not optimistic,and there is a big gap compared with other industries.Therefore,a rural commercial bank that is inherently in short supply,more urgently need to have a clear understanding of their own financial risks,and take targeted financial risk control measures.This paper takes J rural commercial bank that was formally established in 2011 as an example,adopts research methods such as literature research,analytic hierarchy process(AHP),and descriptive statistical analysis to try to answer the following four questions:first,what is the financial risk status of J rural commercial bank in the past five years,followed by what is the problem that needs to be solved in the current state of the financial risk of the bank,what is the cause of such problems and how to improve measures of control financial risks of J rural commercial bank in the light of these issues.Based on this,this article first summarizes the literature on commercial bank financial risk assessment and control,generalizes the relevant theoretical basis of commercial bank financial risk,and then uses commercial bank's "Camel rating method" according to previous research results,combining with the particularity of J rural commercial bank to determine financial risk evaluation index.After determination,the proportion of the evaluation index was assigned through questionnaires and research interviews to complete the establishment of a financial risk assessment system.Finally,according to the established evaluation system,the capital risk,asset quality risk,management level risk,profitability risk,liquidity risk and the aggregated financial risk of J rural commercial bank in the past five years were calculated and analyzed.In addition,in order to increase the comprehensiveness of analysis and diagnosis,this paper also selects financial figures of four rural commercial banks in the province in 2016 to conduct a comparative analysis of J rural commercial bank to find out the key issues that need to be settled urgently in the status quo of J rural commercial bank financial risks and puts forward control policy recommendationsThrough the study of this article found that the longitudinal comparison J rural commercial bank financial risk,financial risk value rising in the past five years,it also led to the 2016 financial risk value in comparison with other four trade out in the second place,so the financial risk should be controlled.But judging from the five major risks of financial risk decomposition,its control over liquidity risk,profitability risk and management level risk did not lag behind.Therefore,this paper believes that J rural commercial bank's current control over financial risk should be based on capital risk and asset quality risk.In early 2017,J rural commercial bank took two measures to supplement its own capital.Based on this,the focus of this study was on non-performing loans in asset quality.Finally,it was proposed that J rural commercial bank should first step up support for agriculture and small and micro business in this economic downturn,and prudently conduct large-scale loan business;secondly,it should introduce professional talents,integrate various resources already existing in the industry and built on this,cooperate with other platforms to improve the data volume and technology level to achieve the purpose of cost control and efficiency improvement;in the end,it is necessary to improve the responsibilities division definition of the loan business at all levels and perfect its performance appraisal system.Implement of these three measures may carry out targeted control over the deterioration of financial risks.