Risk Management in Commercial Banks’ Participating in Private Equity——Case Study Based on Silicon Valley Bank

DOI

10.2991/icssr-13.2013.134How to use a DOI?

Keywords

commercial banks; private equity; risk management

Abstract

Private equity1 in China has developed rapidly in recent years and commercial banks widely participated in PE business in many ways to share the profits. The risk of loan affiliated to PE business and direct investment is far higher than that of the traditional business of commercial banks. Risk management becomes the key problem deciding whether China can allow mixed operation to give commercial banks the right to participate in PE. Silicon Valley Bank serve for startups and private equity firms for a long time, but it manage the risk successfully, with a low rate of Not-performing loan as 0.6%. It has been one of the top twenty in the U.S. banks. Based on the study of Silicon Valley Bank, this paper compares and analyses risk-control problems which Chinese commercial Banks face, and put forward policy recommendations.

Copyright

© 2013, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Li Zhou
AU  - Jing Mei
AU  - Xiaoyu Sun
PY  - 2013/07
DA  - 2013/07
TI  - Risk Management in Commercial Banks’ Participating in Private Equity——Case Study Based on Silicon Valley Bank
BT  - Proceedings of the 2nd International Conference on Science and Social Research (ICSSR 2013)
PB  - Atlantis Press
SP  - 579
EP  - 582
SN  - 1951-6851
UR  - https://doi.org/10.2991/icssr-13.2013.134
DO  - 10.2991/icssr-13.2013.134
ID  - Zhou2013/07
ER  -