Study On The Causes And Controls Of Credit Risk In State-owned Commercial Banks

Finance is core of modern economy. As the main part of our country's financial industry, it is of vital importance for the commercial banks to control the credit risks, which will not only affect their business results, but also their competition strength. Futhermore, the fail of controlling the credit risks will result in the commercial banks bankruptcy, which might cause the credit crisis in the whole society. Meanwhile, the normal process of the economic development of the society might be affected.Therefore, how to strengthen credit risk prevention is an urgent need to the state-owned commercial banks. Firstly, the paper illustrated some aspects of credit risks for state-owned commercial banks. These include the definition of credit risks, the content of credit risks, the characteristics of credit risks for state-owned commercial banks and the situations of credit risks for state-owned commercial banks. Second, made a study of the cause of credit risks for state-owned commercial banks. The paper analyzed systematically the cause of credit risks of state-owned commercial banks from the banks, the enterprises and the external environment. Then, introduced American Citybank credit risk management experience and get revelation. Finally, made some suggestions of improving the credit risk management of state-owned commercial banks.