Study On Risk Management Of Chinese Commercial Banking Loans

As a special enterprise, the operation of the commercial bank has direct influences on the stability of the economy and financing development. So the management accident of the bank will easily lead to structural destruction to the economic and financial order, and even initiate the system crisis of the whole society. In the past decades, banks in China have been making a fat profit mainly on the loans carrying any interest. Inquiring into the strategies of supervision and precaution on the banking loans risk control, accordingly, becomes both theoretically and practically important for constructing a stable framework of steady operation and resisting the risks in China. Nevertheless, from the successes and failures in the other countries, this study could be of practical guidance for China to prevent and eliminate the latent risk at the present stage of increasingly manifest and serious risk control accidents.This dissertation falls into five chapters, expanding around the status of international academic research on risk management, the conditions, supervision and precaution of the banking loans in China. The introduction of the dissertation puts the emphasis on the destructive effect of the banking risk control accidents on the economic and financial order from the specialties of the banking operation, following which presenting the dissertation briefly on its general meaning. The next chapter prepares the necessary background, basis and condition for further study by studying the foundational theories of risk management. Afterward, Chapter Three makes use of the above theories to figure out what's the problem with the banking industry in China. It ends upconclusion of the results in the previous study, and based on the investigation and analysis of the banking risk in China, the suggestions of policies and strategies to establish risk management system suitable to China.