The Research On The Credit Risk Management Of China's Commercial Banks Under The Financial Open Condition

The 21^st century is the century of economic and financial globalization. But at the same time, with the increase of the financial globalization and the financial magnate's volatility, commercial banks are facing more credit risk. The credit risk management of China's commercial banks started very late, and the technology management method is compared the existence big disparity with the developed country. With China's entering WTO and the implement of the New Basel Capital Accord, how to improve the level of credit risk management has become the significant problem faced by Chinese commercial banks. This thesis not only comprehensively introduced the most advanced credit risk management methods in the western world, but also thoroughly discussed the questions that how to improve the level of credit risk management of the domestic commercial banks.There are six parts in this thesis. In the first part, background and significance of the research are introduced, and the current research situations on credit risk management of commercial banks are summarized. The second part discusses about the fundamental concept of credit risk management and the approach to measure credit risk. Further, the credit risk quantification models are discussed and compared. The basic aim and framework about the New Basel Capital Accord are also described in this part. The third part mainly discusses the influence of finance openness on the Chinese banking and the problems of the credit risk management in five aspects. In addition, this part discusses the new requirement of the new accord on the credit management of China's commercial banks. In the fourth part, the state, characteristic and origin cause of non-performing assets and bad loan are discussed. This part discusses how to enhance credit risk management through reducing the bad loan rate from a macroscopic position. And this part attempts to establish a model to test the relationship between the bad loan rate and GDP growth. Some conclusions with practically referenced value are made. This chapter is one of the core contents in this thesis. The fifth part analyses the application about the internal rating-based approach that is mentioned in New Basel Capital Accord within Chinese commercial banks and points out the problems about internal rating system in domestic commercial banks. Based on theory and practical verifying analysis, conclusions and advices on credit risk management are given in the last part.