Study on the Risk Management Strategy of China's Commercial Banks

Abstract

Study on risk management of commercial banks (CB) is a hot issue in recent years. Especially after the financial crisis, more and more researchers begin to study how to manage the risk of China's CB. This paper combines the existing literature and Basel II to analyze the risk status of China's CB. We find that although China's CB have got a great achievement in risk management by now, three main kinds of risk: credit risk, market risk and operation risk, still threat to the China's CB further development. After analyzing these risk, we provide the risk management strategy from four aspects at last, including organizational structure, business procedure, technology and culture.