Research On Risk Management Of Retail Credit Business Of Local Joint-stock Commercial Banks In China

In the context of the continuous vigorous development of economic internationalization and financial market globalization at this stage,China’s economy is also making steady progress in the long run.At the same time,with the continuous improvement of people’s living standards and living conditions,people’s demand for investment and financing business has increased,making retail business of commercial banks have broad market conditions.The advantages of strong profitability but low cost of retail business are highlighted,which makes retail business gradually become the focus of domestic and foreign commercial banks.At the same time,the retail business of China’s commercial banks has played a positive role in expanding demand,stimulating the economy and regulation.Commercial banks have paid more attention to retail business,which has brought new direction and strength to the domestic economic development.Retail business has gradually entered a period of rapid development and achieved certain results.However,as China’s macro-economy is increasingly integrated into the world’s macro-economy and financial institutions,the risks of retail business will be different at different stages of development,especially during the period of great development,the impact of the world financial crisis on China is also expanding,all of which put forward a warning to people,that is,the risk management of China’s commercial banks’ retail business is an unavoidable problem and should be carefully studied.Since 2008,corresponding measures have been taken to prevent the expansion of the cyclical risks that have gradually emerged in China’s real estate industry,but they have brought excessive volatility risks to asset prices,affected the quality of retail assets of commercial banks,and triggered a series of problems in retail business risks,including the shadow commercial banks in 2013.Once China’s commercial banks pay insufficient attention to the risk management of retail business,it is difficult to support the rapid development of retail business,which gradually exposes another problem-the difficulty in adapting risk management to the rapid development of retail business at this stage.Although China’s commercial banks have achieved certain results in the risk management of retail business at this stage,there is still a big gap compared with developed countries.Whether a series of risk early warning,prevention and control can be achieved has become a prerequisite for the rapid development of retail business of commercial banks.In order to make the retail business development and risk prevention ability of China’s commercial banks reach the advanced level abroad,we must take a series of effective measures.Therefore,it is of practical significance to study the risk management of retail business.This paper mainly starts with Zhongyuan Bank,a local joint-stock commercial bank,and analyzes the risk management of retail business.First,it summarizes the theoretical knowledge of modern financial risk management related to risk management,and checks the domestic and foreign literature on risk management of banking operation.Second,it deeply studied the main problems faced by Zhongyuan Bank Co.,Ltd.at present,analyzed the early and recent retail business risk cases of Zhongyuan Bank,analyzed the problems in its retail business risk management,and summarized the main risk problems in the risk management of the research object;Combined with the actual situation and difficulties of the retail business risk management of Zhongyuan Bank,the paper gives targeted suggestions on the retail business risk management of the research object,such as building a personal credit risk rating classification system,building a special audit and review team,adhering to comprehensive risk management,and adhering to the risk control awareness of all staff;Finally,from the perspective of the future retail business risk management of local joint-stock commercial banks in China,the paper puts forward reasonable management countermeasures in the aspects of personnel culture construction,system construction,organization construction and technology construction,and puts forward suggestions to improve the retail business risk management of the research object.As a prominent operating institution in the retail business of local joint-stock banks in China,Zhongyuan Bank has some problems in risk management while its retail business is developing rapidly.Through this study,I hope to draw the attention of relevant personnel to the risk management of retail business,and provide some reference for local joint-stock commercial banks that are developing key retail business.