Research On Credit Risk Management Of Chinese Commercial Banks

To most commercial banks, credit risk is still the main cause of bankrupt. The level of credit risk management is the core competence of commercial banks.By risk management practices, foreign commercial banks establish a set of more mature management tools, such as economic capital, customer testimonials, project evaluation, credit approval, risk warning, risk monitoring, etc. Among these tools, IRB is the basis of risk measurement, the core technology of risk management, and also the core content of NEW Basel Capital Accord.Since 2004, the three pillars of New Basel Capital Accord Increasingly clear, and IRB is widely recognized by domestic commercial banks. Banks explore to decide business by using economic capital with the expected rate, and using the basic tools of credit risk management. Through economic capital management to match risk and return, this is becoming the main direction of risk management. Domestic commercial banks construct vertical risk management system. Meanwhile the risk management focus on the scope of a comprehensive risk monitoring, the concentration of organization, and the independence of management functions.It should be said that the credit risk management framework of domestic commercial banks have been basically similar with that of foreign banks after years of theory and practice, but to domestic commercial banks, There is still a long way to go in Model optimization, Local adaptation, and interface between the various management methods and refinement.By researching the credit management of foreign commercial banks, this paper try to identify problems in credit risk management of domestic banks, and suggest the recommendations to improve risk management.