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The Research On Commercial Banks' Credit Risk Management Process Reengineering

Posted on:2005-08-19Degree:MasterType:Thesis
Country:ChinaCandidate:F YuanFull Text:PDF
GTID:2156360152968653Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Credit risk management is the key content of commercial banks' risk management system. It is not only concerned with the profit of bank but also with the existence and development of bank. Because of the relative short period of commercialization and lack of modern management consciousness, the level of credit risk management in domestic banks is relatively low. This has seriously hindered the sound development of bank. Reforming the present management mode and promoting the risk control competence have already become the top priority for commercial banks.Although credit risk management has irreplaceable function, it may bring management cost as well. In practice, it mainly embodies for the restriction to marketing and profit maximization. In a condition that buyers dominate the lending market, the task-oriented management mode, which simply emphasizes on risk control and ignores competition, can no longer meet the needs of modern credit risk management. In order to meet the market competition, commercial banks need to improve their credit risk management process urgently. It is only by organically combining credit risk management with credit marketing can the key competence of commercial banks be promoted. This is the basic goal that this paper studied the reengineering of commercial banks' credit risk management about. The thesis connected standard analyses with case analyses. Starting with analyzing credit risk and credit risk management, through analyzing the current situation of credit risk management in domestic banks, the paper announced out that managing problem is the key reason which restricted the developing level of credit risk management. Then, by analyzing the cost of credit risk management and the impact of credit risk management and credit marketing on commercial banks' key competence, it expounded that credit risk management must submit to the goal of profit maximization. On this basis, through introducing the concept of BPR and using relevant experience of developed countries, it proposed the basic thoughts and total suggestion of reengineering the credit risk management process. At last, analyzing the credit risk management process of two local commercial banks, the thesis pointed out the problems in the process and the striving direction of reengineering the process.
Keywords/Search Tags:commercial bank, credit management, credit risk, business process
PDF Full Text Request
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