The Research On The Regulation Of Credit Risk In Commercial Banks

Banking industry is not as splendid as people always think. Behind its gorgeous outlook, there are many risks facing bank. As a highly risky financial industry, banks are in focus of people, not only because their close relationship with people's daily life, but their terrible crisis, which will cut down people's asset, make them panic and even make the whole society unstable.There are many risks facing banking industry, such as credit risk, interest rate risk, exchange rate risk and so on. In this paper, the author just focuses on the credit risk.Firstly, this paper introduces some theories about credit risk, including the causes of credit risk and the meaning of credit risk exposure.Secondly, this paper introduces some achievements both inside and outside China. The achievements outside China are better to calculate the credit risk but we cannot use them directly for we are in different background.Later, this paper analyzes the fact and background of bank industry in China.Finally, this paper analyzes two cases, one in China and one from Japan, and gives some suggestions.The aim of this paper is to study the solutions in both China and oversees and find out the very way for our banking industry.