Abstract
Under the background of global financial crisis, Chinese commercial banks suffer from significant economic losses and negative social influences due to frequently happened risks. To prevent risks tends to be more urgent. This paper starts from risks in front of Chinese commercial banks under the financial crisis, analyzes problems in Chinese commercial banks constructing risk prevention long-term mechanism, and advances countermeasures for expediting the construction of risk prevention long-term mechanism.
Highlights
For a long period, Chinese commercial banks face problems of poor assets quality and low assets reorganization rate
Chinese commercial banks lack of initiatives in product design and pricing and lay less stresses on product development and brands, which leads to a serious product homogenization and an absence of core competitiveness
Supervision and regulatory institutions find that some commercial banks do not perform customer risk preference evaluation or do it carelessly, do not understand customers’ financial conditions, investment goals, investment experiences, risk recognition, and risk bearing capability exactly, do not evaluate whether recommended financing products are suitable for customers or not and inform relevant suggestions to customers
Summary
Chinese commercial banks lack of initiatives in product design and pricing and lay less stresses on product development and brands, which leads to a serious product homogenization and an absence of core competitiveness. All commercial banks have the problem of financial innovation. Because of restrictions in system, technologies, and macro policies, presently Chinese commercial banks’ financial innovation mainly focus on quantities. The type of financial innovation is few and the scale is small. Innovations concern all fields of commercial banks but mostly are introduced from western countries directly.
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