Research On The Entire Process Of Credit Risk Of Enterprise Customer In Chinese Commercial Banks

Credit risk is the predominant of all the risks commercial banksconfront in China. And at present, the level of credit risk management ofcommercial banks is relatively inferior. The lack of sense of initiativeand systematic planning in traditional credit risk management; Results inthe low quality of the credit property of the commercial banks and thegreat decrease of the benefits of the banks.This paper intends to systemize the content of the credit riskmanagement of commercial banks, to set up a systematic sense of creditrisk management, which the process of credit management ofcommercial bank can be considered as a system which can be dividedinto two subsystems according to the procedure of managing andcontrolling credit risks of commercial bank. The paper fully analyze theprocedure of credit risk management of commercial banks' legalcustomer through further studying the two subsystems and the relationsbetween them.This paper includes five chapters.Chapterâ… . Introduction. It mainly presents the theories on which thestudy is based the practical significance of the study, summaries of therelated literature, research methods to be imployed, and created pointsthrough the study.Chapterâ…¡. Demonsrrating. Analyzing the identification of single signal of credit risk of legal customers. Based on the achieved researchresults in the signal identification. The paper mainly analyzes the effectof the identification and its inherent mechanism of financial level, scaleand breach of contract, explains the inner reasonableness of the trend ofpreferring to focus on large enterprises as commercial banks' customerswho have lower asset-liability ratio and better credit record.Chapterâ…¢. Analyzing identifying model of credit risk. This chapteris one of core chapters in this paper. First of all, it studies identificationmodel of credit risk by combining financial data. The author acquiredand collected six groups of data of 100 listed companies in 1999 and2000 which cover total asset turnover ratio, total asset growth ratio,total asset return ratio, fixed assets turnover ratio, debt ratio, net assetgrowth ratio. Based on these basic data, then this paper sets up a modelof analyzing the credit risks by using distance discriminant method.Chapterâ…£. Studying the credit risk management after loan ofcommercial bank. By using a questionnaire whichwas designed tosurvey all the Reorganized loans in 2005 of one Joint - stock commercialbank and analyze their classification, some inductive &rational researchresults have been acquired about the management after loan ofcommercial bank. Then the phenomenon of a universal problems in themanagement after loan of commercial bank and their related causes havebeen further analysed. And the relative suggestions on how to enhance the management the credit risk after loan of commercial bank.Chapterâ…¤. Introducing performance examination of credit risk. Thepaper fully analyzes performance examination model of risk-adjustedbased on theory, and discuss action principle and method of RAROCmodel and its prospec in applying as well.