the banker as a driver
...hanging lanes, and so on, to make the whole journey comfortable and safe. If the driver always stops sharply, you may be badly injured. Will you take his vehicle next time? The answer is obvious. Similarly, credit reputation is the life of the bank. To win the trust of the public, we should thoroughly understand the financial markets and make the correct analysis of economic trends. To meet the above goal, the first step is to have a complete understanding course, and second, to foresee risks in advance and manage them. Now, let me explain the two procedures respectively. Firstly, a complete understanding course means knowing the competitor and knowing yourself, you cannot be defeated even in a hundred battles. We can comprehend ourselves by the scale of our business volume, by the variety of our financial products, by the ratio of capital adequacy, and so on. The statistical information may help us know ourselves better, fix our proper place in the market, and find our disadvantages and advantages over your competing banks. At the same time, we should understand the details of the environment around us. That’s how we grasp the opportunities, and how to transfer challenges into strengths are depended on the degree that we know the environment. Secondly, the ability to foresee risks will impact the whole development of our bank. We always mention identifying risk exposure, but how? I believe the only way is to foresee risks and avoid them. In a foreign bank, determining the degree of risk exposure of any company requires a thorough investigation of the company’s structure and an understanding of the market in which the company is operating. After all, whether the company is going to be successful depends on how well it can exploit its market position. As we all know, reserve requirement ratio, interest rate level, open market operations are the main monetary policy instruments. Any changes of above-mentioned policies will make a great influe...