On Legal Prevention Of Commercial Bank 's Credit Risk

Commercial bank as a special commodity who operates currency usually has a high debt ratio. So, it is important to have a good credit for its continued operation. At present, China’s commercial banks generally have problems of credit risk, which not only seriously weakens the competitiveness of commercial banks but also endangers the healthy development of the national economy. Therefore, the effectively guard against credit risk i’s the key of solving financial risks. This paper attempts to present situation, harm and cause analysis of credit risk of commercial banks in China, carries on the discussion to guarding against the credit risk by legal methods.In general, this paper is divided into four parts as following:Part one defines the concept of credit risk of commercial bank. It points out that the credit risk is the uncertainty of the safety factor of the credit funds. Especially from a legal point of view, credit risk is a special contract risk. It also makes a classification on credit risk according to the five international methods and legal manifestations, discusses the necessity、reality controllability of credit risk.Part two describes the characteristics of credit risk from the market players>、 market rules and the basis of credit, the negative impact on the social and economic operation、the construction of credit system from credit risk. It also explores the causes of the credit risk from the internal and external factors in details.Part three discusses the legal basis for prevention of the credit risk from the theoretical level. The theoretical significance lies in the legal nature of the credit, which is a contractual relationship; the practical significance is the importance of the bank in our financial system, it is helpful to promote the sound development of the economy by preventing credit risk in legal method.Part four proposes the legal measures to prevent credit risk. On the basic of the USA and Japan’s experiences, the paper advices risk control by legal mechanism from internal control and mechanism optimization concrete measures which including contract law、property law、bankruptcy law and finally lender system and credit internal supervision.