Study On The Application Of Modern Credit Risk Management In Chinese Commercial Banks

Modern market economy is credit economy. As a very important credit agency in modern market economy, commercial banks play an important role in promoting economy develop smoothly. As well, because of its special action, credit risk naturally becomes the main risk in all kinds of risks commercial banks assume. The paper begins with the connotation, characteristics and management elements of credit risk, Then based on an overall review of modern credit risk management principles and approaches, analyses the characteristics of the credit risk that Chinese commercial banks face and the practical obstacles in the way of populization of modern credit risk management in Chinese commercial banks. In the end, the paper attaches importance to discuss how to apply modern credit risk management in Chinese commercial banks, such discussion offer helpful research in making Chinese commercial banks follow international financial rules, compete in international financial markets, advance the level of risk management and realize the profit-risk balance.