Research On Credit Risk Management Of Commercial Banks

The Commercial banks will face the non-systematic risks like credit risk, fluid risk and so on during their management, as well as the systematic risks such as interest risk, market risk etc. In these risks, the credit risk is the main risk which the Commercial banks face. Since the 1980s, the financial globalization has aggravated the volatility of financial market, and the banking operation situation has had obvious change. The credit risk grows gradually day by day because of the intense competition between banks. Therefore, the international banks pay more and more attention to the credit risk."International Convergence of Capital Measurement and Capital Standard" revised by the Basel Committee in 2004 (The New Basel Capital Accord) has implemented comprehensively. It means that the commercial banks' risk management has entered a new period. As a member nation of the Basel committee, our country must influent by this new rules directly, especially those large Multinational banks in our country. But our country's credit risk research was still at the start stage. Compares with the overseas advanced banks, our country's commercial banks still lack the advanced credit management technology. Therefore, we should learn from the advanced banks' mature credit risk management experience, and establish our own credit risk management system gradually according to our national condition.This article has studied the credit risk from four aspects:First of all, from the quantification analysis angle to the credit risks, it introduces four popular international credit risk measure models at present, and analyzes their good and bad points and in our country's serviceability.Secondly,this article discusses the microscopic mechanism of commercial banks' credit risk occurrence from the game theory angle. Meanwhile, it states the tentative plan and frame of constructing data counter-cheat systems, to prevent the false finance data form customers.Thirdly,this article takes China Construction Bank Taizhou Branch as an example, analyzes the present situation, loan rating-based taxonomy and customer credit rating-based systems of our country's commercial banks' credit risk management. It points out the existence problems, and also proposes some improvement methods.At last, this article states the method of constructing a comprehensive credit risks management model embarked actually from our country's national condition. This model profited from the international advanced credit risks management model, and includes the before-loan credit decision support system and after-loan credit risk analysis early-warning system.This paper uses the knowledge of statistical theory, econometrics methods, the methods of game theory, information economics and finance theory and so on, draws on advanced credit risk management model, and combines with China's reality to explore and study credit risk management of China's commercial banks and establish a comprehensive credit risk management system.The main innovation of the paper in the following three points:Firstly, it use game theory methods to establish game Dynamic model in order to analyze the root causes of China's commercial bank's credit risk and thus put forward the data to build anti-fraud systems to prevent fraud in financial data. At the same time, taking China Construction Bank Taizhou branch for example,the paper makes analysis on credit risk , brings up a new China Construction Bank's credit evaluation ideas, and has the empirical testing.Secondly, according to Altman theory, build customer financial analysis of the plight of the models, then combine it with the anti-fraud systems and Commercial Bank of China's current level of loan classification system after improved to establish a loan decision support system to do Well the loan-to-risk prevention work.Thirdly , through comparing and analyzing the current popular four major international credit risk management models analysis of, and consider applicability in our country, a preliminary to the establishment of the technical CreditMertrics and methods mainly absorbed into account other models of credit risk analysis of the merits of early-warning system , And loans and decision support system together constitute a comprehensive credit risk management system.