China’s Banking Credit Risk And Its Prevention Of Moral

With the increasing complexity of modern society economic activities, the moral hazard research which has originated in the insurance market,is no longer confined to its original domain,and the "moral hazard" swept the word again for the American subprime mortgage crisis in2007. After30years of reform and opening up in China, the economic and social structure has undergone profound changes.Under multicultural background,it has quietly changed in social mentality and become more apparent on ethical conflict, and so the moral hazard events has taken place one after another,it is especially in banking credit business activities.The so-called moral hazard means that a person may be do some hidden behavior which is difficult to find and is bad for others,as he promote maximum his own utility in economic activity. The moral hazard has often manifested as some risk behavior in the main market economy, such as rules of law constraints,violating moral norms.As they engaged in China’s banking credit activities, borrowers,bankers,credit monitoring,and credit institutions,credit monitoring agencies,and even government departments maybe choose the moral hazard behaviors due to maximize their own interests.The moral hazard behaviors is concentrated expression of the distortion of the credit market information,credit individual dishonesty,credit institutions disloyal,and credit regulatory failure area,which led directly to a series of bad loan problem,social credit corruption,social credit system problem,and eventually endanger the systemic sfety of the banking.Financing means that the presence of credit and risk,which is operating by the bank credit management,for the soul of the bank credit management is trust obligation. It is the moral subjects value choice on subjective and objective conditions that the moral hazard will take place:which is subjectively rooted in the virtue of credit individual,and objectively rooted in the society’s moral culture atmosphere which is developing by the credit individual,and the ethical design of the credit system and the ethical environment for supervision.As the moral hazard of bank credit keep effectively prevention,we should design a set of the trust responsibility as the core of the external ethics restriction system, and we also should ensure its effective implementation through appropriate ways, and especially ensure to internalize the external constraint.That is to say,it will develop a ethical behavior and moral character by the credit actors,and thus enable them to make a ethical decision behavior. Thus,on one hand,we should effective use of various external controls,and play the role of ethical regulations and focus on grasping the monitoring aspects and improve its supervision system,and improve the credit personnel of moral management,through the ethics legislation,ethical rules and regulations, strengthen ethics supervision,forming ethics ways,etc.At last,the moral subject will formation some responsible ethical decision-making behavior. On the other hand,we should make full use of various internal controls, such as occupation training,moral probation, integration of public emotion, concept of value, individual character shaping implantation and make full use of its soft constraints. Through the bank construction of moral culture, occupation moral construction, create an atmosphere in the form of industry culture etc, it will actively guide and educate the credit moral subject to be internalization. Thus, the moral subject will become self-management, self-control and self-realization. Finally, it is to be noted that we should trying to maintain a balance between internal control and external control and coordinat its relations from the perspective of the system, so that each factor of the system can be accommodated each other, and form maximize synergies, which will eventually lead to the credit moral hazard digestion in the invisible.