The Study On Credit Risk Management Our State-owned Business Banks

Since 1990s ,the international ,financial crises have risen and fallen one after another ,unstable factors have increased sharply in financial market, and incidents of financial institutions shutting down resulting from the credit risks occurred from time to time. With such a background ,banks of the countries concerned pay more attention to credit risks and the management techniques and means of credit risks continue developing under the push of many factors .During the 20 years after the economic reform ,the risks especially the credit risks, undertaken by our state-owned business banks in the motion of the macro-economy, are becoming bigger and bigger. The problems of huge bad assets of the state-owned business banks have gradually appeared since 1990s. Hence, how to deal with appropriately these risks and retain steady has become the important subject in the operation and management of our business banks.The credit risk management in business banks is not only a platitude but also a new problem lying before every bank manager and executive. By a platitude, I mean that there is risk anywhere and any time in the operation and management of a business bank, especially today when finance is integrated and globalized, and financially derivative instruments emerge in an endless stream, so the management problem of bank credit risks may be said to be accompanied with banks. By a new problem, I mean that as it is not merely a micro-problem in the course of our reform for business bank credit risks and bad assets to increase, it has its deep systematicfactors. This paper tries to analyze, from the great background of the reform, the formation causes of our state-owned business bank credit risks and bad assets, and probe into the counter-measures and ideas of how to strengthen the management of our state-owned business credit risks.The paper is divided into five chapters. Chapter one introduces the variety of business bank credit and the main risks faced with, outlines the credit risks management of loans, and introduces, too, a few ways of credit risks management in some foreign countries. Chapter two outlines, from the theoretical and practical angle, the development process of our state-owned business bank credit risk management. Chapter three dissects and analyzes the formation causes of our state-owned business bank credit risks and bad assets. The problem of our business bank credit risks and bad assets is not purely a problem of the business bank micro-operation, it has its deep systematic factors. In the final analysis, the above-mentioned problem was actually caused by the lack of loan repaying capabilities resulting from the continual decline of the whole benefit of the enterprises, which is the fundamental cause for the increase of our business bank credit risks and bad assets. Chapter four compares the differences in credit risk management between Chinese and foreign business banks, and sums up some aspects in credit risk management of foreign business banks, which deserve to be used for reference by our banks. Chapter five introduces some measures that have been carried out by our country in disintegrating and being on guard against credit risks and probes into the counter measures and specific measures which should be further taken in order to be on guard against and disintegrate our credit risks.