The Studies Of The Risk Management On Group Customer Credit For Bank Of China Jilin Branch

Modern commercial banks have been gradually changed and developed to be'machine of risk'by taking risk, making use of risk, controlling risk, mitigating risk, and linking risk with varied banking products and services. Since the nineties of the 20th century, the globalization of finance and economy is becoming irresistible, and financial innovations have been emerging in an endless stream, accompanied by more financial crisis. Tracing to the source, it reveals that the'loopholes'on risk management have either directly or indirectly caused every historical financial crisis. As the most important customer of the banks, the group customers have some characters such as complicated relations,confines,hiding related trade and so on. All of these can give us financial risks and difficulties for our credit management. For these reasons ,we should take some effective measures to control the risk of group customers on time.As to the problems above, this article give us a research on the newest theories about the risk management , and through analyzing the risks of two group customers in bank of China JiLin branch ----- Group of ZhongDong and Group of HongYuan, give us self examination to the problems of group customer of Bank of China Jilin Branch., and give us some constructive opinions and suggestions .Firstly, there are some risks on group customers of Bank of China Jilin Branch,such as fake registered capital and financial statement , related trade, scale expansion and so much loan from banks.Secondly, there are some problems of group customer credit management for Bank of China Jilin Branch, (1) Bank of China Jilin Branch ignore the group customer credit management and did't take some effective measures to contruct group customer credit management system on time . (2) We can't control the flows of the customer's capital because of unsymmeteical informations . giving us difficulities on the group customer credit management. (3) There isn't a necessary connect system between our bank and others.Lastly, as to the problems above, we should take some effective measures to strengthen the risk on group customer credit management . We should strengthen the risks of group management insisting on the principles below:1. Unity.Including seek unity of group customer management. 2.Forcing.The group customer which is conforming to the standard of the business bank, shoud be managed as one part of the group customers. 3.Carefulness . Which including prevent the risks of concentrating,construction, infecting. 4.In timing, Which is through recognizing and distinguishing the risks of concentrating, related trade.,develop the business of group customer in time and effectively. 5.Differenting . As to different situation,use different types of management to the group of customers. 6.Sharing information.Every part of the risk management of group customers should enjoy the informations together.7. Controlling the risk of group customer in advance.All the part of the risk management of group customers should take actions together, prevent and controll the risk of group customer in advance, make the management after the loan as the most important part of the management of the risk on group customers.The main thinking is that :1. Strengthen conscious of the risk,and the abilities of group customer credit management. 2. Change the management strategy, form the characters of ourselves and superiorities. (1) Changing the sales strategy, on the basis of loan, developing some special products such as cash management , capital of business, bank of investing and so on.(2) Putting the management of industry assembling and credit composing into effect in time.(3)Inventing more financing tools and servicing products.3. Improve the systems of the risk management, and the group customer credit management. (1)Constructing concentrating systems of the risk management,.(2) Clearing and definiting the tools of the risk management .(3)Improving the systems of distribution of profits and coordinate of management. 4. Improve the systems of the informations of the credit, strengthen the analysis on related trade and relations. 5.Control the total amount of loan for group customer , prevent the excessive of loan. 6. Strengthen the supervisory of capital and management on group customer. 7.Strengthen the construction of systems on controlling the risk of group customer in advance,and the systems of IT. 8 .Constructing the systems of informations sharing between our banks and another.As to above thinkings , we make some specific measures on our group customers , including: discriminating , verifying and approving group customer.,ranks of credit and total amount of loan for group customer,examining and approving of total amount of loan for group customer,credit management of group customer and so on.Forming a"3-to-1"system that is make up of independence of investigation fulfilling our duty, democratic judgement,and stricting approvement.In conclusion (from research perspective), Therefore, this deserves prominent attentiveness. While the mainland's economy is progressively being integrated into the process of economic globalization, the new impediments and challenges being faced by our banks are mounting. We should construct effective systems on approving and accepting group customer , construct effective systems on credit management of group customer, Strengthen conscious of the risk and the abilities of group customer credit management. Improve the systems of the informations of the credit, Control the total amount of loan for group customer, Strengthen abilities of group customer credit management. Ourl banks should gain knowledge of the new theory and experiences from advanced international banks straight away, putting in place of a vigorous and solid risk management system, so as to make well preparation for international competition.