Font Size: a A A

Research On Expansion And Risk Of Chinese Commercial Bank Credit

Posted on:2015-04-29Degree:DoctorType:Dissertation
Country:ChinaCandidate:T B LiuFull Text:PDF
GTID:1109330467975103Subject:National Economics
Abstract/Summary:PDF Full Text Request
Commercial banks are enterprise operating in high-risk lending and deposit business, and its business risk has a strong conductivity and destructive, so they should always adhere to sound business philosophy. However, since the early eighties last century, several outbreaks of foreign banking crisis, many commercial banks went bankrupt in these crises. These banks existed widespread imprudent business behavior in operations. This article suggests that the Chinese commercial banks have strong credit expansion impulse. The root reason of credit expansion is the impulse of commercial bank executives, especially the "number one" president, political motivation and the control of insiders tend to develop aggressive business development plan, and through unreasonable assessment system into branches at all levels credit expansion impulse. Chinese commercial bank’s risk management system has not been fully realized vertical management, so it is difficult to ensure the independence of the risk management decision-making, and therefore can not suppress the urge to branches of credit expansion. Meanwhile, the bank’s risk management department insiders control led to structural imbalances in credit, and banks put in too much to risky real estate industry, local government in financing platform loans.In this paper, according to "find the problem-analysis the problem-solve the problem" mode, the logic of ideas gradually unfold. By summarizing the literature and principal-agent theory, this paper discoverer the existence of excessive credit expansion of commercial bank operations and risk propensity. Through the analysis this paper pointed out that Chinese commercial banks have strong credit expansion impulse, has its roots in commercial banking headquarters and senior management level (especially the "number one" governor) of internal control. Credit expansion impulses cause Chinese commercial banks put too much loans to the field of overcapacity industry, such as real estate, local government financing platform loans. In order to guard against and defuse Chinese commercial bank’s credit systemic risk, the paper separately from the operational level and corporate governance (including risk management framework) level gives some suggestions. This paper consists of four parts, a total of nine chapters. The first part includes Chapters I and II. The first chapter is an introduction, and it introduces the research background, purpose and significance, research framework and so on. The second chapter is a literature review. This chapter uses the previous research framework in moral hazard from bank shareholders. This paper from pro-cyclical credit, corporate governance structure, imperfect angles to analyze the reasons and excessive expansion of bank credit risk management.The second part includes chapters III and IV. Among them, the third chapter analyzes the use of principal-agent theory on bank’s "internal control" issues and moral hazard behavior, noting the special nature of Chinese commercial banks entrusted agency relationship. The fourth chapter analyzes the total amount of credit by commercial banks in China, the growth and structure, etc., indicate the presence of a strong Chinese commercial bank credit expansion impulse. The main reason Chinese commercial banks prefer bank credit expansion is senior tend to develop aggressive year business development plan, and issued to the branches through a set of evaluation index system. As the assessment on an annual basis, appraisal award to honor the end, while the loan is almost the indicators (such as profits, deposits, fee-based business, etc.) of the most critical means complete. Therefore, this assessment system led directly to the credit expansion impulse affiliates. Meanwhile, the bank’s risk management and market sector there are also "internal control" issues internal control risk management department who will lead the structural imbalance of credit, market sector insiders control the quality of credit assets will result in no real issues.The third part, including the fifth, sixth, seventh and eighth chapter, thematic analysis section. This part analysis four most prominent areas of credit risk in the Chinese banking sector currently (industry overcapacity loans, real estate loans, local government financing platform loans and wealth management financial services) and the risk of developing motivation for a more in-depth analysis reveals the reasons the banks to carry out these operations, as well as the main risks faced by these businesses, and from the perspective of commercial banks The third part proposed risk mitigation countermeasures.The fourth part includes Chapter IX. This part makes some policy recommendations in guard against systemic risk from key areas of credit, and solves the principal-agent problem (internal control issues).
Keywords/Search Tags:commercial banks, credit risk, credit risk industries with overcapacity, the riskof real estate loans, government financing platform credit risk, financial business risk, riskmanagement
PDF Full Text Request
Related items