A Study Of Credit Structure Adjustment Of China's Commercial Banks

Along with the progress of the globalization, Chinese commercial banks expose to drastic international challenges and stresses. However just like every coin has two sides, opportunities come with challenges simultaneously. As long as they grasp the nettle with positive attitude, these opportunities can be seized, then the stresses can be converted to motivity and passivity can be transformed to initiative too. In China, the credit operation is still the most important service provided by commercial banks. In order to achieve preponderant status when our commercial banks face furious international competition, exerting their function of credit operation to the utmost extent has significant meaning. Furthermore, it is the crucial factor for the whole economy function healthily.As far as commercial banks are concerned, as long as credit operation exists, it is inevitable that the distribution of the credit resources should also exit, which will lead to the existence of distribution structure of these credit resources. Ultimately the demand of a reasonable and efficient credit operation structure will appear consequentially. The modification of credit structure is a very important subject in credit management of commercial banks.In recent years, both native and abroad economists have done much work in the field of the credit management. The abroad researches concentrated mostly on the best choice of credit management from theoretic perspectives. In contrast, native scholars still focus on the description of individual operational commercial banks' management in a given period of time and provide some suggestions for them. But wenoticed that systematical and integrated research on the credit structure is so limited that it is still far away from needs. Because of the important role of credit structure in allotting the credit resources, preventing and controlling of the credit risks and improving the credit management qualities, figuring out the existing problems through a theoretic thought, analyzing the current circumstances and then combining the two aspects to find out the countermeasures unavoidably grasp the economists' attention.From the whole perspective of the national commercial banks, the credit structure is still unreasonable and needs to be modulated and optimized to fit the markets' needs continually. Because of the inflexibility of management system, the looseness of the management and the lack of standardization of the decision-making activity, in addition to the long-period influences coming from the limitation of industrial division, low-standard repeating construction and improper administerial intervention as well, all of the commercial banks are lack of the sense of credit structure adjustment and the methods of modulating it. Eventually all these passive factors result in the current disadvantageous credit structure whose characteristics are simplex and analogous, and credit resources excessively centralizing in certain clients, industries and domains, as well as the partial unbalance of the credit structure. So it is very difficult to satisfy the needs of profitability, security and fluidity of the banks, and this situation brings on potential or realistic structural credit risks probability.In this dissertation, special attentions are paid to the area of credit structure adjustment of commercial banks. Through qualitative and quantitative analysis, in addition with the research method combining with demonstration and theoretical analysis, systemic investigation has been done. First of all, the commercial banks' credit structure was concretely defined to be composed by product structure, domain structure, industry structure, client structure, term structure and monetary sortstructure, etc. Whereafter the Imperfect Information Theory, which is the prevalent principles that should be complied with during the process of credit structure adjustment, was also introduced. Furthermore, recapitulative argumentations were expounded about the academic precondition of credit structure adjustment, including game playing theory between banks and clients, information unsymmetrical theory, credit allocation theory, and Credit Portfolio theory. By introducing these theories, the importance of the adjustment was illustrated from the theoretic perspective. After that we focus on the actual circumstance of the commercial banks in China, by empirical analysis of the total amount of the loan, credit term, domain, industry, client, product variety and monetary sort distribution, certain conclusions can be achieved about the existing problems, the obstacles and the requirements in the rationalization process of the commercial credit structure adjustment in China presently. Over all, the strategic measurements about how to solve the problem were put forward. In this part, three aspects of this problem were discussed in detail. These aspects include that the government and the central bank strengthen their functions to build up favorable working environment for the adjustment, the commercial banks themselves clarify their operation orientation to set the foundation for the adjustment, and carry out the differentiated credit portfolio management to speed up the adjustment process. It will be my happy to know this thesis could work as a useful reference, more or less, during the process of credit structure adjustment.