Credit Asset Management Of Commercial Banks Based On Credit Derivatives

The credit business is the major business of commercial banks. Holding maturity has long been the main method for the credit asset management in the commercial banks of China. However, it is difficult for the commercial banks to confront positively the credit risks with this method alone. Nowadays, the more and more serious risks to which the banks have face make the carrying expiration no longer an effective method to distribute the loan risks, and thus increase the possibility of bad debts. This is a threat against the survival and development of the commercial banks of China.Under such conditions, it is in great need to find a suitable method for the credit asset management. The giant banks around the world have employed all sorts of positive credit asset management methods, which are usually based on the changes of borrowers and markets. These methods can help to distribute the credit asset risks and to maintain and even increase the values of credit asset. In this thesis, a brand-new tool for credit asset management, credit derivative, is introduced and its applications to credit asset management in China are investigated, analyzed and discussed. We concluded that credit derivative is an effect method providing a new idea for active credit asset management. Due to the special abilities of credit derivative, the commercial banks can prepare more thoroughly for the risks.This thesis consists of five major parts. The first part starts with the commercial bank status quo of credit risk. Through the analysis of the conventional pre-loan controlling measures, the author draw a conclusion that, without the combination with the credit asset management, pre-loan controlling cannot eliminate all credit risks alone. In the second part, a summarization of the commercial bank current measures in asset managements is first made. Through the comparison with the conventional...