A Study On Credit Risk Management Of The State-owned Banks

The paper starts with analysis of the causes of credit risk of the state-owned banks (SOBs)and the problems of the current credit risk management, then points out that the credit risk management of the SOBs shoulders heavy responsibilities because of the huge non-performing loans(NPLs) and the uncertainty of the economic transition by discussing the management systems of the credit risk of the SOBs.The reason for credit risk of the SOBs is complicated, and we need to reform and perfect it from many aspects. The paper analyzes how to take precaution against credit risk and how to dissolve stock risk. Finally, the article points out that it is no doubt basic to proceed with system, but we can't be put in right place in one step。So, the paper thinks, following the perfection of the system, that the SOBs should expand the intermediate business combined with the credit risk management, go to take precautions against the increment risk in the development of the business, then, to a certain extent it can dissolve the stock risk at the same time. With taking financial advisor's business as an example, the paper has analyzed the effects of financial advisor's business on credit risk management from the perspective of information asymmetry theory and asset portfolio theory. It proposes the new thinking of credit risk management of the SOBs: Launching the enterprise's financial consultation business (FC), which will take precaution against and dissolving credit risks from the several following respects: First, strengthening the ability to obtain the enterprises' operation information, and reduce " adverse selection " and " moral hazard". Second, taking precaution against the maliciously structure behavior effectively. Third, strengthening the digestion absorbability to NPLs. Fourth, enhancing the independence of the SOBs, weakening the reliance on the government, Fifth, developing the relationship between the bank and enterprise. Finally, the paper puts forward some suggestions about how the SOBs expand the EFC to strength the credit risk management.