Research on reputation risk management of commercial banks in China

Li Xiang* and Yang Lina

Abstract

Reputation risk is extremely important among all risks of commercial banks. It is an unpredictable, invisible risk which can not be caught out of thin air, and has become "the most awesome "one. Once suffering from the reputation crisis, commercial banks will not only damage the credibility, but also affect those listed banks which active in the capital market, leading to a shock in commercial bank’s brand value, indeed, endanger the banks’ survival. However, the bank has its model to deal with reputational risk, so strengthen the management of reputational risk come to be a key to Chinese commercial banks, thereby, taking advantages of bank’s good reputation to reduce loss. In this paper, we start from a series of questions that existent in Chinese commercial banks reputational risk management, then, put forward to several strategies in order to promoting reputation risk management .