Research On The Management Of China Commercial Banks' Credit Risk In Loans

Recently, with the globalization of finance and the fluctuation of international finance market, the whole world pays more attention to credit risks. The Basle Accord, which is declared to strengthen the management of credit risk, has been implemented entirely in the developed countries. At the same time, the methods on credit risk management have been enhancing and going from qualitative to quantitative. Then in order to improve our commercial banks" recognition and ability against credit risks and shorten the gap between our banks and the foreigns', the editor particularly studied it in this article.There are four chapters in this dissertation. The first one begins with the introduction of fundamental concepts about credit, then it goes to the analysis of the credit risk faced by banks, and the analysis of its influences is discussed in the last chapter.The second chapter is about the main theories of credit risk management in the world, including classical methods such as expert system, Z model, ZETA model and modern methods such as Creditmetrics Model. Classical method of credit risks measurement lays particular stress on qualitative analysis mainly, depending on financial data, but it lacks the basis on the strict theories. Comparing to the traditional qualitative analysis, creditmetrics model uses more quantitative measures to analyze credit risks. It can determine the most loss amount that value of credit assets might suffer within one year and under a fiducial probability.The third chapter shows the current conditions of our banks. Firstly, our bank's own capital is low, Secondly, the rate of bad debt is high, then the author analysed the reason causing tin's kind of state.The purpose of the fourth chapter is to solve the problem "how". Firstly, it suggests that the credit system should be set up though the country. The second part makes some suggestions about the building of a quantitative analysis system in credit risk. At last, this chapter considers constructing a risk management system of our commercial banks by referring to foreign experience.