Study On The Precaution And Resolutions Mechanism Of Commerial Bank's Credit Risk Of China

Risk Precaution is a permanent subject in the operation and development of finance institution. There is much risk in banking, but the most prominent and centralized is credit risk. It is determined by the history and status of our commercial banking and the channel of our enterprises' financing which is indirect. In our country, the main business of commercial bank is credit business, while intermediate business is only a less part of the whole business, many enterprises mainly loan from banks. The proportion of directly financing from capital market is very low. As a result, banks' risk mainly come from credit business. So it is very important for the safe operation of the whole commercial system to analyze and research the precaution and resolution to the risk. In the thesis, the whole course of the precaution and resolution to credit risk in its characters, appearances and causes is systematically analyzed. The related course is concerned with every key part of risk administration in banking which forms a close system that mutually influences and interacts. In the thesis, such system is divided into four subsystems: credit risk evaluation system, control system, supervision system and resolution system. The four systems respectively have a series of premises and indexes. From these main points, a close and scientific precaution mechanism, which could effectively control the occurrences and spread of risks, is set up.