Construction of Early Risk Alarm Index System for Commercial Banks

摘要

Financial Institutions' stability is the fundament of the economy. As one kind of special enterprise, the operation of commercial banks has immediate impact on the national economy and financial stability. Therefore, it is important to establish an effective financial risk monitor system, such as evaluating, early alarming and handling systems which can efficiently prevent risks for commercial banks. In this paper, we propose about 40 indexes to reflect the risks in the macro economy, estate and stock markets, and banks. We also present an individual weight for each index by Analytic Hierarchy Process Theory. Based on these works, a new kind of early risk alarm index system is finally constructed.