A Study On The Credit System Of Native Commercial Banks

Deng Xiaoping says that finance is very important, and it's the core of modem economy. The quality and efficiency of finance decides weather the national economy can develop persistently or not .China's financial system is mainly composed of bank indirect credit, which gives the banking especially commercial banks an important status in the national economy system. In "The New Palgrave: A Dictionary of Economics", the commercial banks are defined as the cycle of the deposit and loan between the enterprises, and they also provide a loan which they collect in other ways to the enterprises. At present, the commercial banks' main business is industrial and commercial deposit and loan, and most of the profits are coming from balance between deposit and loan, the main risks of commercial banks also stem from the credit business. So, to a large extent, the research of the commercial banks is the research of the credit.As the period of protection after entering WTO is over, China's economic and financial system has enter the after-shunt period, and the credit management of the commercial banks is faced with a new circumstance. The multinational banks have entered China's market, and also bring new management ideas, systems and new challenges. Under new market circumstances, the market orientation, loan structure, product innovation, loan marketing and risk evading of the credit business is not only the strategic question of credit management, but also the necessary problem that has to be solved in the research of credit management. The key point to solve this problem is establishing a reasonable credit system, through reasonable system arrangement, cut down the transaction cost, effect credit function and conduct monetary policy. Finally, promote the growth of economy and social welfare through reasonable allocation of credit fund which causes the change of growing factors' contribution ratio.The discussion of this paper is under direction of Political Economics, and the thesis investigates mainly at The New Institutional Economics angle. Based on the exchange expense and consign theory in New Institutional Economics , the research of China's commercial banks' credit system is carried under many analytical methods ,such as comparable method, systemic method, and the combination of quantitative and qualitative method. We try to make a systemic and deeply study on this subject.The paper analyzes the research background, present research condition firstly, and puts forward the research methods, research structure and meaning of the paper. The second chapter mainly concludes the commercial banks' credit theory systematically. The third chapter introduces the general principle of the commercial banks' movement, and leads to the necessity of commercial banks' system construction. Chapter four compares the present situation of credit system in China's commercial banks with the world's main countries, and the credit system at different stage, the paper has found out the problems of China's commercial bank credit system. Part five and six is the research of China's commercial bank credit system from the formal angle. For the process of credit business and the structure of the paper, these two parts are separated as the pre-loan management system and after-loan management system. Part seven is the research of credit culture. These three parts have analyzed the problems of the commercial bank credit system, and put forward a series of countermeasures. Part eight analyzes the outer circumstances of the credit system innovation and tries to contribute to the construction of China's credit system.In this thesis, the author makes attempts and explorations in the following fields:Firstly, apply the latest, foreland production of New Institutional Economics and Economics of Information to analyzing China's credit market. The paper starts from the explanation of credit process, analyzing the relationship between bank and its trade partner, and the relationships between the banks. The thesis apply the theory of exchange expense and the theory of consign to credit activity. Credit market is deemed as an imperfect market, the paper analyzing the problem of Adverse Selection, Moral Hazard, Credit Admeasure that caused by information asymmetry, so to check the credit system arrangement at academic angle.Secondly, the author completely combs and sums up the credit system at different stage. The thesis analyzes the transformation of China's credit system after the foundation of New China. The thesis compares the characteristics and performance of different credit system; understand the historical status of credit system, Summarizes the deficiency in order to improve credit system arrangement.Thirdly, by analyzing an example of how middle size enterprises finance, we conclude that middle and small size company can avoid credit admeasure by the innovation of credit system. At the same time, big banks can cut down transaction cost and gain comparable advantage by flat loan when they make a loan to middle and small companies.Fourthly, This thesis makes a specific study on commercial bank's credit system. When studying bank credit and related credit system issues, traditional economic theories always put their attention at a macro level. They didn't explain why the problems were aroused and they didn't raise relevant measures to solve the problems either. Bases on the New Institutional Economics and combines the reality of China's commercial banks, this paper makes a farther analysis and brings forward relevant suggestions.Finally, the thesis studies credit culture of commercial bank systemically, narrates the importance of credit culture as an informal system arrangement in commercial bank. The thesis analyzes the background of credit culture, demonstrates the representation of ill credit culture, try to raise suggestions on how to build healthy credit culture.