A Study On Credit Risk Management Of Commercial Banks' Group Customers

With the development of socialism marketing economy in China, some enterprises have expanded to enterprise groups. These enterprise groups have been in the commercial banks' graces because they can bring more profits than small enterprises do. However, ever since 2000, a number of enterprise group such as LANTIAN, YINGUANGXIA, NONGKAI GROUP, SANJIU GROUP, XINJIANG DELONG have got into trouble one after another, which have revealed the potential credit risk of group customers and have received prompt attention of Chinese commercial banks' and China Banking Regulatory Commission. It is imperative to adopt requisite measures to prevent credit risk of group customers so that Chinese commercial banks can perform steadily.Except the concluding close, this dissertation is divided into five chapters:Chapter One explains the subject and study method, summarizes some new points of this dissertation and performs a literature review of group customer's credit risks both at home and abroad.Chapter Two is the definitions of some basic concepts, such as group customer of commercial banks', group customer credit and group customer credit risks.Chapter Three demonstrates the present situation and the performances of group customer credit risk. Based on a specific case occurred in Shandong Province, it summarizes that there are five obvious performances in Chinese commercial banks' credit to group customers, such as universal related-credits, multilateral credit and over credit, too much related-guarantee, distorting financial information and evading banking loan, etc. Regarding the character of group customers' credit risk, this thesis proved that the credit risk of group customers' has the character of concealing, lagging, mutation, diffusing, influential and difficult to handle. Chapter Four analyzes the sources of group customers' credit risk from four aspects: enterprise group, commercial bank, law and regulation construction, and social credit system. It is concluded that group customers' credit risk stems from information un-symmetry between bank and enterprise, different negotiating status of bank and enterprise, individual reason and collective unreason, etc.Chapter Five puts forward some suggestion in regard to improving group customers' credit risk managerial system. First, commercial banks' credit risk managerial system should be geared to group customer's operation system. Second, bank-group credit and bank-club credit can improve commercial bank's negotiating status and solve information un-symmetry. Third, banking regulatory departments should construct information platform and strengthen risk warning. Last but no the least, social regulatory system aimed at group customer credit risk should be strengthen.