Risk Management Analysis of Commercial Banks in China under COVID-19 Pandemic

Abstract

Since the G20 financial reforms were implemented in the wake of the 2008 financial crisis, the COVID-19 pandemic is the first significant test of the global financial system. In contrast to the 2008 financial crisis, the shock had an external origin. Indirect funding dominates China's financial system. For China's economy to grow and for many industries to recover, the banking system's capacity to efficiently handle the effects of the epidemic is essential. Each commercial bank is impacted by the epidemic in a different way due to its unique asset magnitude, debt structure, percentage of intermediate business income, and management style. This paper extracts the degree of commercial banks affected by different risks, and advances relevant suggestions for strengthening commercial banks' internal control and accelerating digital transformation, in order to cope with the adverse impact of the epidemic and to promote a rapid recovery of our economy.