Summarization and Analysis on Commercial Bank Risk Management/RÉSUMÉ ET ANALYSE DE LA GESTION DES RISQUES DES BANQUES COMMERCIALES

By Yunfeng, Zhou; Junwen, Feng et al. | Canadian Social Science, January 1, 2008 | Go to article overview

Summarization and Analysis on Commercial Bank Risk Management/RÉSUMÉ ET ANALYSE DE LA GESTION DES RISQUES DES BANQUES COMMERCIALES


Yunfeng, Zhou, Junwen, Feng, Xiaoyan, Li, Canadian Social Science


Abstract:

Risk management of commercial banks is an important part of their operation activity. The risk management development of commercial banks in the world is a process from single risk management to integrated risk management, while the risk management technology has been developed from qualitative analysis to comprehensive measurement and analysis with various quantitative methods. Currently, the world advance commercial banks already have more mature ways and results in concepts, organization settings and risk management technologies. For the late development of risk management in our country, a scientific and complete risk management system has not been established. At present stage, we are making efforts in introducing and establishing a scientific risk management system step by step.

Key words: Commercial bank; risk management; risk management technology

Résumé: La gestion des risques est une partie importante des activités d'opération des banques commerciales. Le développement de la gestion des risques des banques commerciales dans le monde est un processus qui va de la gestion simple à la gestion intégrée, quand la technologie de la gestion des risques a développé de l'analyse qualitative à la mesure globale et l'analyse avec des méthodes quantitatives diverses. Aujourd'hui, les banques commerciales avancées du monde ont déjà plus de méthodes et résultats mûrs en concept, organisation et technologie de la gestion des risques. A cause du développement retardé de la gestion des risques dans notre pays, un système scientifique et complet n'a pas encore été établi. Actuellement, nous sommes en train de faire des efforts pour introduire et établir pas à pas un système scientifique de la gestion des risques.

Mots-Clés: banque commerciale, gestion des risques, technologie de la gestion des risques

1. INTRODUCTION

Risk exists in each and every step of bank operation. The process of commercial banks providing financial service contains the bearing and control of risk. Since the production of commercial banks, risk accompanies them always. Therefore, commercial bank risk management was born an important part of commercial bank operation. A summarization and analysis on the historical development and current status of commercial bank risk management will make clear the development direction of commercial bank risk management, and suggest suitable measures. This paper reviewed and summed up the development history of commercial bank risk management, and also provided a summarization and evaluation on the advanced technologies of commercial bank risk management, as well as on the current development status of world advanced commercial banks and Chinese commercial banks.

Brief development history of risk management of world commercial banks

Commercial bank risk management is to predict, avoid, eliminate or transfer the operation risk by means of risk analysis, risk prediction, risk control, etc., in order to decrease or avoid economic loss and to guarantee the security of operational capital as well as financial system. 2

Commercial bank risk management is a product in the deepening understanding of financial risk. The brief development history of commercial bank risk management can be summed up into following phases:

The first phase is the time before 1960's, when the commercial bank risk management mainly focused on the risk management of asset operation and liquidity keeping of bank assets.

The second phase is the time between I960' s and 1970' s. During this period, commercial banks emphasized on borrowing capital to keep or increase asset revenue to scale, which created conditions for banks expanding operations, but also increased bank operation risk. For the change of principal operation of bank development, the key point of bank risk management was transferred from original asset operation risk management to debt risk management.

The third phase is the time between 1970' s and 1980' s. …

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Summarization and Analysis on Commercial Bank Risk Management/RÉSUMÉ ET ANALYSE DE LA GESTION DES RISQUES DES BANQUES COMMERCIALES
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