Analysis Of Credit Risk Prevention System Of Commercial Banks In China

Risk-prevention is the timeless topic on the operation and development of Bank Industry. Among the various ever-present risks involving the Bank Industry, Credit-risk is the most outstanding and common. Commercial banks'major asset-related business is Credit Business,which is right the main source of risks. China's commercial banks are always challenged by a high rate of non-performing loans and weak security of credit assets.According to Asymmetric information and Coase Theorem, this paper is exploring reasons that causing credit risk from the aspect of Law-economics in order to analyze the occurrence and prevention of such risks. Following the description of the Loan business procedure in commercial banks and the status quo of credit risk thereof, this paper is studying on the Law Framework applying to risk-prevention.In conclusion, pursuant to the Basel II and based on China's present situation, this paper tries to seek out a tentative system in urgent need of establishment or improvement in the field of risk-prevention.