The Analysis And Management On The Credit Risk Of State-owned Commercial Bank

Credit risk is the possibility of loss related to credit instrument. In China, credit is the largest of all financial assets. It plays an important role in National economy. Most of whole credit is from state-owned bank, and a considerable part of them is in bad status. This article is a study on the status of state-owned commercial bank's credit. This paper makes a large quantity analysis on the credit risk, so as to find out the reason of the high risk of the credit. The first reason is from the state-owned enterprise: high credit rate and low revenue; The second reason is from the bank's management: lack of perfect internal control and low quality of the staff; The third reason is from the state finance: the national finance is not strong enough to support the development of national economy, it has to depend on the bank's credit. In the end , some suggestions have been made to control the credit risk: First, to strengthen the management of the banks; Second, to speed up state-owned enterprises' reform; Third, to strengthen the national finance. Great achievement can not been made if we take no notice of any aspect of the stated three aspects. To control the credit risk, we must work as a whole.