Commercial Bank Loan Risk Management Research

In recent years, the competition ability of our commercial banks is doubted. According to the compliments to the WTO, our bank will open to the foreign capital. Loan risk is one of most important source of risk that our commercial banks face, and it constructs the main part of risk management. So strengthening the measurement and management about loan risks is of much significance to our commercial banks.Regarding the present situation of the banks, based on the domestic view, on one hand, that the commercial banks' scale on middleman business is small, the market share about off-balance sheet businesses is narrow, and the financial products' innovation is of insufficiency, has seriously restricted the improvement of profit pattern in the commercial banks which is sole and abnormal, so that our commercial banks rely heavily on the loan profit's growth. On the other hand, the entire bank system appears increasing difference for the loan to deposits, plus the inefficiency of the difference capital using, which means the return rate of investment in the money market not only lowers than the loan interest rate, but also approaches or even lowers the average debt cost, the result is that the massive currencies deposit is detained in the commercial bank system, which cause the commercial bank to shoulder large amount interest disbursement. Thus, the present profit pattern set a higher standard for commercial banks to grant the loans. That is to say, the credit risk relates directly to commercial bank's competitive ability, the bank continually and the stable development.Melting into the global market becomes the direction for our commercial banks' reform. As the transition-period is ending, our country commercial banks soon encounter a new-round intense competition, and the western commercial banks will cause the challenge to the survival and development of our banks while they bring new ideas about advanced risk measurement and management. Without doubt, it proposes the urgency that our banks develop the internal advanced model to manage the loan risk. From the view of loan risk management, the paper, goes on discussions about the management of loan risk on the basis of what forefathers studied.