Study On Management Risk Evaluation And Control Of Changsha Rural Commercial Bank

Rural commercial banks have been committed to serving small and medium-sized enterprises and farmers,and they have unique policy advantages but also face disadvantages such as high geographical dependence and lack of innovative business.2020,when the new crown epidemic raged,rural commercial banks experienced many tests,such as narrowing interest margins,frequent problems with non-performing assets,and lack of capital replenishment,etc.In addition,the construction of risk warning system and risk control management of rural commercial banks started late.In addition,in order to accurately grasp the future development trend of agricultural and commercial banks,it is necessary to evaluate and analyze the operational risks of agricultural and commercial banks.Changsha Agricultural and Commercial Bank has been among the top 100 banks in China’s banking industry since its establishment in 2016 with its strong net core tier 1capital and operational efficiency,and is one of the few agricultural and commercial banks on the list.However,in recent years,due to Changsha Agricultural and Commercial Bank’s late establishment,weak risk resistance and lack of adequate capital replenishment channels,its own adjustment is not timely enough in the face of complex market environment changes,and risk warnings such as escalating non-performing assets and declining profitability have emerged,lacking its original competitive advantage and failing to be selected as one of the top 100 banks in the banking industry announced in2021.Taking this event as the starting point,this paper will take Changsha Agricultural and Commercial Bank as an example for an in-depth analysis and a comprehensive evaluation of Changsha Agricultural and Commercial Bank’s business status from both the industry and itself.Then,based on the "Camel" rating system,11 evaluation indicators are selected from six aspects: capital adequacy,asset quality,profitability,liquidity risk,management and growth capability.Then the weights are used to rank the comprehensive scores according to the Topsis method,and the following comprehensive evaluation results are obtained: through the comprehensive ranking of 14 agricultural and commercial banks in 2020,we can find that Changsha Agricultural and Commercial Bank has a low overall comprehensive ranking,and its five aspects of capital adequacy,asset quality,profitability,management ability and growth ability are relatively behind other banks,for which we can refer to other banks’ operational initiatives to prevent Operating risks.Through the comprehensive ranking of its own years from 2017 to 2020,we can get that the operating score in 2020 decreases significantly compared to 2017,and the operating problems become more prominent,but the overall is controllable.Finally,based on the results of the comprehensive evaluation of the industry and itself,the corresponding operational risk prevention and control recommendations are given in five aspects: capital adequacy,asset quality,profitability,management ability and growth ability.