Risk Control of Financial Derivatives in Commercial Banks

Ye Dan

《Frontiers in Economics and Management》 2卷6期 (2021/06) Pp. 384-393

https://doi.org/10.6981/FEM.202106_2(6).0060

摘要

Financial derivatives is a product of financial innovation by means of risk transfer, which plays a great role in promoting the development of financial market, helping investors avoid risks and hedge. But it also has the risk of creating turmoil in financial markets. Therefore, in the use of financial derivatives, we must fully study the risk of financial derivatives, strictly prevent the risk of financial derivatives at the same time. Firstly, his thesis analyzes the characteristics of financial derivatives, such as leverage, complexity, value constrained by basic instruments and risk aversion; Secondly, it discusses the risks faced by its development from default, supervision, information and other aspects. This thesis selects the financial annual report data published by 16 listed commercial banks in China from 2010 to 2016 and other relevant data, and uses the model to empirically study the impact of financial derivatives on bank related risks. It puts forward some risk management measures, such as perfecting laws and regulations, strict supervision by relevant departments, and strengthening self-management of financial institutions.

關鍵字

Financial Derivatives ； Commercial Banks ； Risk Control

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