A Theoretical Thoughts And Countermeasures Study Of China's Commercial Banks On Credit Risk Management

Nearly 50 years,financial theory,financial practice,financial products and financial markets are robust fast. At the same time, various types of global financial institutions are facing an increasingly and complex financial risks. The business activities of commercial banks associated with the credit risk, market risk, liquidity risk, legal risk, operational risk, and so on. Among them, credit risk is basic and the most important one. Compared to Western countries, China's underdeveloped capital markets, financial intermediation and the deployment are mainly rely on indirect financing. commercial banks in China's economic development in the role of the more notable, for which credit risk to China's commercial banks is of great significance. The credit crisis would threaten not only to commercial banks, and endanger China's national economy. Therefore, the management of credit risk is not only an important part of risk management of commercial bank, but China's national economy sustained and healthy development of the prerequisite requirements. At present, China's commercial banks is of the lower level of credit risk management, poor ability to withstand risks, so improve the commercial bank's credit risk management capabilities is especially urgent. The article sought to China's commercial banks through the credit risk management status and analysis of existing problems, propose solutions to increase China's commercial banks on credit risk management.There are four chapters in the article. The first part introduces the main articles on topics background and significance of topics, and pointed out that article of ideas and methods.Chapter I is the main content of this article. Chapter I outlined a clear definition of commercial banks'credit risk, and summed up the credit risk characteristics: objectivity, endogenous, relevance, obviously asymmetric information, historical data difficult to obtain, the lack of data and so on. Then the credit risk management theory was outlined, the credit risk can be broadly divided into risk management of assets, liabilities, risk management theory, the balance of risk management theory, the balance sheet Table of unified management theory and the theory of a comprehensive risk management stages. The chapter is also summed up from the perspective of both traditional and modern in the banking credit risk measurement methods. Traditional methods include: law experts, CART risk classification, credit scoring models; modern methods include: Credit Metrics model, KMV model, Credit Risk + model and Credit Portfolio View model. The second chapter is the management issues and analysis of China's commercial bank credit risk. At this stage, China's commercial banks credit risk is manifested in the high rate of non-performing loans and capital adequacy rate and the equity capital ratio, and the credit structure is single. The performance of main reasons: First, a social credit system was not sufficiently developed. Second, China's commercial banks have not established a sound internal rating system, which restricted the credit to a large extent the level of risk management. Third, in our country, the commercial banks built. Legislative internal rating system is relatively small, especially for those poor risk management, has just begun an internal credit risk model for the banks, and the rules may allow them in the market competitiveness weakened, in the competition at an even greater disadvantage status.Chapter third is targeted to try to find the internal reasons. This part is also discussed mainly from the macro and micro aspects. From a macro perspective, first, China's financial regulations and financial market is not perfect enough, a small number of people, a few businesses and a few local governments do not trust the integrity of failing to observe the phenomenon. Second, the Government of the bank's deposit and lending would cause a certain degree of pressure, the banks of the funds under the administrative intervention is in the wrong orientation and configuration errors, thus form large amount of bad assets of banks. Third, China's commercial bank is to create a large proportion of non-performing assets. Fourth, the credit environment is poorer. Micro, on the one hand, China's commercial banks lack the concept of credit risk management, on the other hand, do not have a scientific and reasonable credit risk management system, and lack of credit risk management techniques and methods.To address the above problems, Chapter IV made a number of policy recommendations from the macro and micro aspects. Macro aspects, first of all, it is necessary to improve banking supervision system, and we need to regulate banking system, on the other hand should also gradually raise the level of risk management. Second, we must strengthen the Government of the credit environment and the building of a social credit system. Third, we must strengthen the legal system related to the banking sector for the establishment and improvement. Micro, it is necessary to create commercial bank's credit risk management culture at first, and the second is to establish credit risk rating and an early warning system, and the third is to improve the bank's internal control system.