The Building Of The Pre-alarm Mechanism On Large Credit Exposure Risks In Commercial Banks

The market economy is a kind of resources allocation model which is very monetize and creditable. But the finance system is the core of whole economy, and the commercial bank is the core of the finance system, so the risks that exist in the economy will one day be shown as the most normal risk in the finance system, that is credit risk. At the same time, the social credit environment is bad, the credit guarantee system for the small and medium-sized companies is not sturdy. Also the banks lack the new low-cost profit point, the business is similar in all banks. So the risk is shown as the group credit risks. It is quite reasonable that all banks favor the group customers for their high quality capitals, good reputation and large scales. But the group credit-default events happened on by another, such as Lantian, Nongkai, Zheng Baiwen, Delong and so on. By so, the bankers have realized that there maybe many bad things hidden behind, such as unfair connected trades, complicated connected guarantee, false balance sheet, and fragile capital chain and so on. So it's quite important to control the large credit exposures risks. Now, the research about group credit risk pre-alarm system is just beginning, the papers that can be found about this field are quite few. Considering such situation, I'll do a deep research on pre-alarm system mechanism of the large credit exposures risksIn my paper, first of all, I introduced the major risks of the large credit exposures. Especially the related risks in the large exposures: including the fair and unfair intro-group transactions'types, and the new developments of the intro-group transactions. Secondly, I chose many key indexes by the independence principles, related principles and so on. Thirdly, I built a complicate and complete indexes system from two expects: bank and company, and also suggested to build a risk information database. The group corporations'indexes system including two facts: macro-risk indexes system and micro-risk indexes system. Macro-risk indexes include states strategy risks, region economy risks and industry risks. Micro-risk indexes include related risks, pay loans capacity, operate ability, manage ability and gain profit ability. Bank indexes include industry credit risks, group credit risks and credit structure risks. And the risk information database includes group credit risk in formation, industry credit risk information and region credit risk information. Finally, I combined the experts'ideas and the practical situation, and then gave every index the corresponding weighing. So far, a complete pre-alarm system was building.