China Commercial Banks Strengthen Market Risk Management with VaR Application
The article discusses how Chinese commercial banks need to improve their market risk management due to the growing financial market. By using VaR, a risk measurement method, the study shows that commercial banks should implement VaR as a necessary step in managing market risk. To do this effectively, banks need to enhance data information, establish a reliable internal rating system, and build a strong risk management team. By doing so, banks can better protect themselves against market risks.