Kunshan Sub-branch Of Bank Of China Credit Risk Management Study

Finance is the core of modern economy. A well running of finance system can make the economy be good and healthy. The four state-owned commercial banks are the main body of our country's finance, and they are also the main financial channel of most enterprises. The finance department gains large achievement, but the financial risks are more and more obvious. The four state-owned commercial banks have a large amount of bad assets, and this has affected the security of entire finance system. So enforcing the system of credit risk management to reduce the amount of bad assets is the four state-owned commercial banks' main work, and also ensures to reduce our country's financial risks.Bank of China, Kunshan sub-branch is located in Kunshan city, Jiangsu province. This bank has more credit risks and bad loans and large loss because of its bad system of decision-making and credit risk management. So I will study this bank to discover the reason of its credit risk. By this, I also will study the reason of the four state-owned commercial banks' credit risk. And with the help of my rich experiences of credit risk management, I will try to build a good system of commercial banks' credit risk management in my essay. I hope this will help the banks keep away from credit risk as far as possible.This essay has three parts. The first part is preface, and it illustrates why to have this study and the method of the study. The second part has four chapters. Chapter one is the brief introduction of Bank of China, Kunshan sub-branch. Chapter two is a brief introduction of some concepts of this essay, such as risk, uncertainty, credit risk management, and so on. This will help the reader be easy to understand the essay. Chapter three is the analysis on credit risk of Bank of China, Kunshan sub-branch. In this chapter, the author analyzes some data of the bank, and discovers the reason of its bad loan and more credit risks. The main reasons are adverse selection, moral hazard, bad credit risk management and its loan increasing too fast. Chapter four is some solutions to the above-mentioned problem. In this chapter, the author brings forward somesuggestions on how to build credit risk management system, including the independent loan officer and due diligence system. The third part is some conclusions. In this part, the author summarizes this essay and expects to give some references for the commercial banks to re-construct the credit risk management system.In addition, the main characteristic of this essay is that with the help of his rich experience and good study on MBA course, the author brings forward a lot of practical suggestions on how to build the credit risk management system of commercial banks.Wang Minqiang(MBA) Directed by Su Yu...