Study On The Early-Warning Mechanism Of Credit Risk In Commercial Bank

Commercial Banks are firms that operating on variant risks, so the key point for them is how to identify & measure and how to optimize management those risks on the Banks' survival and development. To establish an early-warning mechanism on Commercial Bank credit risks is most important part to avoid relevant risks, and to evade the explosion of Commercial Bank t credit crisis. It makes great senses that to search a right way on improving the risk management of commercial bank, to find a suitable early-warning mechanism to us on expediting and deepen Commercial Bank credit risk study of theory of China, and strengthen the Banks' ability to resist risks.Firstly, the article identified the definition and main symbol of Commercial Bank credit risks and early-warning of that, further more, it analyzed the risk management on the view of micro & macro real environment, pointed out the first key step of establishing Bank management system, that was to establish a mechanism of early-warning on risks. Secondly, the article integrated the current status of domestic and abroad study and the harm for lack of credit, deeply analyzed the urgency of establishing the Early-Warning Mechanism of Credit Risk in Commercial Bank.The main body of this article is to study how to setup the early-warning mechanism of commercial bank credit risks, and is divided to three segments: 1. index system, 2. early-warning critical value, and 3. installation of early-warning grades. Firstly, the first part has separately set up indexes for macro-economic environment, commercial...