Research On Regulation On Commercial Banks' Credit Risk

Credit risk is one of the oldest and most important financial risks in commercial banks for 700 years. Its broad existence is an important character in modern finance, the root of bad assets, liquidity crisis in banks, and also is one of the basic reasons for territorial or global crisis. So, in order for long-lasting and healthy development of banks, we have to strengthen the regulation on credit risk. China is the biggest developing country in the world. Because of the main method of financing for factories will be banks'finance in a long intending period, so the credit risk will also be our commercial banks'main financial risk. Deeply research for Chinese commercial banks'credit risk's regulation not only is the independent action for commercial banks but also is the need for financial crisis. Based on the above factors and academic need, the paper starts with the general theories and technical model of credit risk regulation for banks, following with the exploration of the new system and model for Chinese banks. The paper tries to discourse upon commercial banks'credit risk's history, actuality and future, on the base of summarization on general experiences and rules of commercial banks'credit risk regulation in and out China. First, the paper introduces the academic basement for the whole paper. The paper roundly introduces the reason, the main body, the action and methods for commercial banks'credit risk regulation. Second, the paper collects three countries: America, Germany and Hongkong. The paper summarizes the credit risk regulation in the above four countries, and tries to find out the experiences and revelation. Third, the paper analyzes commercial banks'credit risk regulation in China. Furthermore, the paper analyzes the system, methods and actuality of commercial banks'credit risk regulation in China. Forth, on the base of the above analyses, the paper designs the appropriate inter-outer measurement model for commercial banks'credit risk regulation in China, makes demonstration and puts forward overall thoughtfulness. Fifth, the paper constructs an integrated strategy for credit risk regulation. By the accumulations for several years of working practical experience, the author consummates the CAMEL model on credit risk and designs a caution index system. This system includes assets'quality, management ability, liquidity, and so on. The index includes all of the commercial banks, business. Lastly, in allusion to the objective and subjective factors for the forming of credit risk, the paper constructs the regulation system. The order is from inside to outside. There are there innovations in this thesis. First, it systemically research the regulation on commercial credit risk from the inside and outside point of view. Second, it constructs a new regulation model for China. Finally, it constructs a whole different regulation system. The methods of research in this thesis include four aspects. First, theories combine with the demonstration. Second, material researches combine with abstract studies. Third, comparison analyses methods. Finally, quantitative methods combine with qualitative methods.