Risk Measurement and Empirical Test of Chinese city Commercial banks

In the process of preventing and resolving systemic financial risks, compared with large commercial banks, the risk prevention and control ability of urban commercial banks has attracted more and more attention from regulators and academic circles. This paper selects the corresponding index data of 14 urban commercial banks from 2012 to 2019, evaluates the liquidity risk and credit risk of the sample urban commercial banks by adopting the relatively mature risk assessment methods in the current academic world, and measures the operational risk by using the income model. Research finding: first, the liquidity risk of the same bank fluctuates greatly during the sample period, while the credit risk fluctuates less; second, the liquidity risk gap between the sample banks is smanll, while the credit risk gap is large; third, liquidity risk and credit risk significantly restrict the profitability of banks, and the liquidity of banks with higher asset scale is more serious, while the credit risk of banks with lower asset scale is more serious; fourth, the lower level of the asset scale of the city business facing the operating risk loss higher than the higher asset scale of the city business. The conclusion of this paper has a certain reference value to grasp the risk problems of current urban commercial banks.