Analysis On Credit Risk Of Chinese Commercial Banks

After studying on a lot of papers about the management of credit risk, I will summarize its commonly characters. And then the paper will discuss its own characters in China.The main content of the paper is as follows: the paper found the characters of credit risk in common of several countries , it could be divided into two kinds: systemic risk and non-systemic risk. Systemic risk has another name called market risk. It can't be dispersed. Non-systemic risk can be dispersed. And it happened casually.Contrapose the commonly reason of credit risk, the paper will analyze from a anisomerous perspective. Because of the asymmetry of information, the Gresham Law appears. And there are many higher risk customers in the bank. The lower risk customers have gone.To find the commonly reason of credit risk in the state-owned commercial banks, the paper will analyze from the macro perspective and the micro perspective. This paper will make a comparison of banks between China and other countries. There are many differences in the law and organizational structure. From the comparison, this paper draws a conclusion that American banks are more initiative than our state-owned commercial banks.And from the macro perspective, the paper will learn the structure of the authors before. I select the law, property right, and the macro economy. Our banks are all state owned, they have their own problems. In our country, every people have right to manage, but not every one do the job well. In fact, under the state owned institution, every one has rights means nobody has. And the asset of the bank will suffer a loss. In the macro economy, the macro policy changed very quickly these years. And of course, the risk is higher. In the special times, our government even intervene the banks directly. In the law, the independence is not enough. The risk can't be controlled very well.This paper can be divided into four parts: the first part mainly tells the readers of the definition of the credit risk and the summarization of the papers previously; the second part is the comparison between the China and America of the banks. In this part, the paper tells what the state-owned commercial banks like now. The third part is mainly about the analysis in macro perspective. It is mainly through the property right, the macro economy, the law perspective to make the analysis; the fourth part gives the advice to the government. It is also from the macro and micro perspective to point what we should do more.The main contribution of the paper is as follows: there are many papers about the credit risk, and they are all did many contributions to the management of the credit risk. We have learned much from the authors before. But most of the papers make the analysis through the macro perspective only. The systemic theory analysis is not enough. To do the research more systemic, the paper points that not only the research through the macro perspective, but also through the micro perspective. And that is why this paper has been written. What is more, this paper will make a comparison study between China and America, and absorbs the essence from the western countries.