The Study On Chinese Commercial Bank Credit Risk Management

Credit risk is one of the oldest risks in the financial market, and it alsofollows the whole development of commercial banks. With financeliberalizing and globalizing since seventies of 20 century, financialinnovation has emerged one after another. Supervision in banking andcredit risk management level of commercial banks can't keep up with themore complicated risk environment. Especially after nineties of 20century, problems of credit risk management were introspected from aseries of severe incidents such as bankrupt of Barings and Asianfinancial crisis. The concepts and technology of credit risk managementwere greatly replenished and developed since then, which attributed toNew Basel Agreements to be issued. All those make the credit riskmanagement to be the first important strategic problem of commercialbanks.Banks and their supervision organizations pay most attention tocredit risk because it is the most important risk in banking, and it relatesto the survival of banks. Owning to violating the contracts or their badoperation, debtors can't return principal and interest, which lies to thebanks'lost of their whole or part of principle and interest Throughresearch of crisis in banking, the World Bank reported that credit riskmanagement failure is a common reason for commercial banks bankrupt.Credit risk lost control is one of the most important reasons for the Asiancrisis. With more and more intense competition between banksthemselves and between banks and non-banks financial institutions,credit risk is becoming greater day by day. It is an urgent problem forfinancial institutions that how to manage credit risk and how to improveassets quality. This paper introduces the contents, the characteristics,the status and the problems of credit risk of commercial banks, and alsothe measures of credit risk management.The paper includes three parts:The first chapter outlines the contents and characteristics of creditrisk management in commercial banks. The chapter elaborates thefollowing aspects: the development of credit risk management in...