Feasibility And Application Study Of Credit Default Swap In The Credit Risk Management Of Small And Medium Enterprises Loans

In the loans of small and medium-sized enterprises, credit risk is the main problems facing to the bank. Most of the traditional credit risk management measures are focus on lowering the credit risk exposure, but not on controlling to decentralizing credit risk at source. Credit derivatives market develops very fast these years, many new credit management tools which can be used to credit risk management are lower cost and higher efficiency than traditional measures. While credit default swap as a main product of credit derivatives, it can let credit protect buyers only regularly spend a payment to the seller, they can transfer the credit risk from buyers to the sellers who have a willingness to take risks, So banks can keep in the bank customer relationships and transfer out the credit risk at the same time. On the application of credit default swap in small and medium-sized enterprises loans risk management at present, the people have solved theoretically the same credit level of credit default swap pricing and design problem. This paper will based on credit risk solutions to different situations of credit default swap pricing and design problem. Let Banks become to the buyers and sellers of the credit default swap, and construct a risk sharing mode, and extend this mode from bilateral mode, trilateral mode to promote multilateral with practical examples, we just want to solve the problem of credit risk management in small and medium-sized enterprises loans.The first chapter of this paper is the introduction of credit default swap risk management and some literature reviews and the introduction of this article related basic content and innovations. The second chapter basically introduces credit default swap the related concepts and the development in the world. The third chapter basically is our country banking applications credit default swap the necessity and feasibility studies. The fourth chapter basically introduces credit default swap transaction mode, namely in the face of the same or different risk status, the bank credit default swap transaction between the design. The fifth chapter is by a concrete example application credit default swap management model to solve the SME credit management issues.