Research On Creditrisk Management Of China Commercial Bank

Risk management is the core content of modern financial institutions management. The key to stable operation of financial institutions is prevention and control of risks, in order to achieve maximum benefits .As a financial institution's main body commercial bank is a major participant and promoter of risk management. Commercial banks are facing market risk, interest rate risk, credit risk, operational risk, and liquidity risks, among which credit risk is the permanent one; it has attracted the attention of entire financial industry in recent years.Credit risk identification and quantification are the prerequisites for effective management. Quantitative models of credit risk management which is based on modern finance theory and modern computer technology is the latest development. Modern credit risk quantitative model has a strong theoretical foundation that can more accurately measure credit risks; therefore it has been internationally accepted as the credit risk measurement model.The ability of China's commercial bank's credit risk management is relatively low, mainly manifested in the credit risk quantification. Compared to those advanced international banks there is a big gap between China's Credit Risk Quantitative Methods and their advanced methods. At present, China's commercial bank's credit risk management is still adopting the traditional method-- qualitative analysis which is lacking of quantitative tools for credit risk estimation. Therefore, considering and making use of modern credit risk measurement model to increase China's commercial banks'credit risk management techniques is a solution to the urgent needs of improving China's credit risks management .The first part of this paper introduced the theory of the commercial bank's credit risk management in the form of Literature Review. Then introduced the development of the commercial bank's credit risk quantitative methods and compared a variety of credit risk management methods, then studied the current credit risk measurement management status of China's commercial banks. From the Perspective of credit risk conditions and the causes of credit risk of China's commercial banks, the paper do in-depth research on credit risk management of China's commercial banks. On this basis, doing in-depth analysis on China's commercial banks credit risk quantification method and pointing out the main problems and to address these questions and suggesting learn to use modern credit risk measurement models to improve China's commercial Bank of Credit Risk management.This article focuses on explanation the model credit risk's advantages and feasibility of its application in China. Then according to China's commercial banks, the available data, use CR + model to analysis the portfolio's credit risk. The results showed that, CR + model can better address the current method-- degree of risk of China's commercial bank and quantify the problem of the credit risk management, and can make a referential significance for China's commercial banks to improve the level of quantify credit risk. Finally, the article put forward the targeted recommendations for China's commercial banks to improve credit risk management from the perspective of the conditions and environment.