Research on Credit Risk Management of Commercial Banks in China
|Keywords||Commercial Banks Credit Risk Risk Management Enterprise With BadCredit|
These few years have witness the great boom in commercial banks. A number of commercial banks in China have come into existed besides those banks owned by state. It seems that the banking business is profitable,however, it contains great risks. The Morgan Stanley has setted good example to us that tells us this business is fragile.The keys to keep our businsee afloat are the recognition and management of credit risk. The research of the area in our country is not so advanced that as scolars we should do more in this area to provide our banks with practical theory systems.In this paper the writer is trying to give some advices basing on famous scholars’ ideas to bankers. This paper consists of five parts.The first chapter explains the concept of credit risk and demostrate the research methods used in this paper. In the second paragraph we explain the conceptions of credit risk and risk management as well as introduce the content of Basel III and it’s influence to our banks’credit risk management. In the following paragraph we uncover the problems existing in the management of the credit risk of our banks and disclose the reasons why these problems happen. The most important paragraph is the forth paragraph and in this paragraph we conduct the empirical analysis of our credit risk management using the methods of qualitative analysis and quantitive analysis. In the end we come to the conclusion that not only the credit of enterprise but also the outside environment, such as legal system and economic development, should be considered. On the other hand,it’s difficult for our commercial banks to all factors of those enterprises. However, in chapter Ⅳ, after our analysis,we find it is dispensiable to analyze all factors.It will work as long as we analyze indispensible factors like the ratio of capital to current liabilities and the main business profit rate. The fifth paragraph we cite the example of Agricultural Bank to prove the conclusion we make in the forth paragraph. In the last paragraph we give some substantive advices to the management of credit risk in our banks.