The Economic Analysis About Credit Risk Of Commercial Bank

Since China's accession to the WTO, the Chinese Government has gradually relaxed the market access standards of foreign banks. It has brought unprecedented opportunities to China's banks, but also has brought a variety of challenges. From the late 1990s there was the outbreak of the financial crisis, and recently there are French Societe Generale Bank'huge losses because of irregular operation, the outbreak of sub-loan crisis in American. They highlight the important position of the financial management in contemporary society in negative aspect. Also risk management of commercial bank is top priority. China is entering a period of rapid adjustment of the financing structure and rapid expansion of the scale of direct financing. From the international experience, in the period of development of capital market and expansion of direct financing, commercial banks often face greater pressure in transition period. Actively promoting the reform of China's commercial banks on credit risk management has become urgent. The author will study the causes of credit risk of China's commercial banks by using macro-economic analysis and micro-economic analysis methods, and analysis the macro-and micro-economic performance and impact of the credit risk. Finally, from the macro and micro analysis about China's commercial credit risk, I advice some management measures about commercial credit risk. It will enrich the theory about credit risk on the form and content. The results show that credit risks of China's commercial banks perform mainly in the excessive growth of credit assets which lacks of coordination with macroeconomic policies, unreasonable credit structure and the high rate of bad loans. There are both macro and micro reasons. On the one hand, macro-economic reasons are the domestic macro-economic situation, the economic cycle, government action. On the other hand, they are industrial policies, credit policy and monetary policy. Microeconomic aspects are the unreasonable mechanism embodied in banks and enterprises, the unscientific development of banks which lacks of coordination. Lastly, after comparing the credit risk management in domestic commercial banks and foreign commercial banks, I advance my views and countermeasures about the credit risk management of China's commercial banks from the micro and macro. Credit risk management of China's commercial banks still have a large gap between the world's leading banks, not in the concept and understanding about credit risk, in risk management systems and risk management mechanisms, but in the scope and depth of risk management and in the techniques and means. There are many areas which need to improve and enhance. By comparison, we believe that we still need further efforts. We need strengthen national macro-control, strengthen the supervision and management of commercial banks from the People's Bank of China and CBRC, and make more science macro-economic policy. At the same time, we must advance state-owned enterprises reform, expand financing channels for enterprises, and establish internal-control mechanism and the early-warning risk mechanisms in banks actively. So a competitive, high efficient, integrated commercial bank system will be truly established in China.