Causes and Precautions of Financial Risks of Commercial Banks in China

DOI

10.2991/icmess-18.2018.86How to use a DOI?

Keywords

Commercial bank; financial risk; Bank internal control; Financial risk prevention; Capital structure

Abstract

Commercial banks are the pillar industry in financial industry. As an important part of economic development, it plays an intermediary role in improving social capital and has a very important social status. However, with the full integration of China's commercial banks and world's financial industry, the Chinese commercial banks are facing development opportunities as well as a certain degree of risk pressures. In this paper, the financial risk of commercial banks is analyzed from the original credit risk and market risk based on the provisions of the new Basel agreement. The importance of strengthening financial risk prevention is demonstrated from the characteristics and hazards of these three kinds of risks. The paper analyzes the causes of financial risks of commercial banks from the perspectives of macro-environment, internal control and capital structure, and proposes some suggestions for commercial banks to adapt to macro environment and to attach importance to talents and improve capital structure.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ran Liu
PY  - 2018/06
DA  - 2018/06
TI  - Causes and Precautions of Financial Risks of Commercial Banks in China
BT  - Proceedings of the 2018 2nd International Conference on Management, Education and Social Science (ICMESS 2018)
PB  - Atlantis Press
SP  - 386
EP  - 391
SN  - 2352-5398
UR  - https://doi.org/10.2991/icmess-18.2018.86
DO  - 10.2991/icmess-18.2018.86
ID  - Liu2018/06
ER  -