The Research Of Credit Process Reengineering Of Industrial Bank CO.,LTD.Jinan Branch

Leman Brothers, America's 4th largest investment bank with 158 years history, applied for the bankruptcy protection in September 2008. This made Leman Brothers bank the biggest insolvent financial institution in the history of finance and indicated the coming of world financial crisis. The world financial crisis was originated from the American Subprime Crisis, which was mainly the result of the inattentive risk management of subprime mortgages by some American financial institutions. Risk management is an everlasting issue for the commercial banks. Credit risk is the biggest risk which the commercial banks are usually faced with. The control of credit risk is excessively pressing for the commercial banks in order to decrease the rate of non-performing loans. Credit business operating system, which is very important in improving the level of managing risk, is the main manifestation of risk management among the domestic commercial banks.Industrial Bank, as a representative of the shareholding commercial banks, has built up a rather effective risk management system; however, some parts of its practices need to be improved. Through the method of statistics and comparative analysis, this essay, applying the theory to the reality, points out and analyze the problems in the credit risk management of Industrial Bank and puts forward some resolutions according to my own working experience in the bank. The essay firstly shows the types of credit risk under research, and puts light on the relationship between the risk management and credit business operating system from the angles of commercial bank risk management and the recreation of business operating system. Then the essay introduces the situation of the risk management of Industrial Bank from two aspects:the organization of risk management and the managing system of its credit business. At last, the essay brings forward the blueprint of the recreation of its credit business operating system which is called "five in one" control system in this article. Through the comparative analysis of the old and the new operating system, the advantages and the preconditions of the new system are also analyzed.The risk management and credit business operating system are dependent on each other. This essay provides vivid learning materials for the risk management of commercial banks which would be helpful and practical in the recreation of credit business system and improvement of the risk management.