To Strengthen And Perfect Credit Risk Management For G-Bank J Sub-Branch

To prevent and dissolve the financial risk is an eternal topic for banking industry. As the globalization of the world economy deepens, the internationalization of finance intensifies. In recent years, financial unrests have happened frequently, and become a common problem focused on by the world banking industry. Under the current financial system of sector separation, credit risk is one of the main risks for China's banks. During the past, assets quality was not high and the ratio of bad loans remained high due to the ignorance of credit risk management. In fact, the problem of bad loans has become a stubborn illness hindering the development of commercial banks. In conjunction with demands by Basel Accord, the dissertation analyses theories on risk management, discusses measures to further perfect credit risk management, and provides proposals on tightening up risk management for G-Bank J Sub-branch.The dissertation is divided into five parts. The first part discusses about credit risk management theories generally. It also points out that credit risk refers to the probability of fluctuation of bank returns due to debtors' default. Many factors affect credit risk. It is generally accepted that credit risks may be divided into internal and external factors. The dissertation discusses about the goals, principals and strategies of credit risk management.Part two discusses the new Basel Accord, among which the demands on risk management and reference for China's banking by new Basel Accord are stressed. It is emphasized that domestic banking should adjust its own risk management system to satisfy the minimum capital requirement of Basel Accord, supervision examination and market constraint, and to keep in line with international banking with advanced management system.Part three discusses about the history of G-Bank J Sub-branch J-Subbranch,analyses the characteristics of risk management according to the procedure of the main businesses and lending activities of G-Bank J Sub-branch J-Subbranch, and further discuss about the existing conditions and problems faced by G-Bank J Sub-branch in its risk management. Thus it is proposed that the key to prevent risk for G-Bank J Sub-branch is to built internal control institution, especially the internal rating system.