A Study On The Credit Risk Management Of Commercial Banks Of China

From the first half of 2007, the sub-prime mortgage crisis of the United States started to appear, and then sweep into the global financial crisis, and even further lead to a global economic recession. The sub-prime mortgage crisis of the United States had shown the nature of modern financial risk.Wall Street financial crisis made us realize that the credit risk as the principal risks faced by the financial institutions had a direct impact on modern social in all its aspects. It also affects a country's macroeconomic policy-making and economic development, and even affects the entire global economic stability and development. As this reason, the Basel Committee have continuously proposed risk management methods and requirements in order to strengthen the risk management of international banks and the supervision of banks. In the situation of the downlink channel of the current global economy, it has a certain practical significance to re-examine the management of credit risk of commercial banks which is an ancient topic.Commercial banks of our country, especially state-owned commercial banks, have been in a risky operation state for a long time. In recent years, our commercial banks handle many non-performing assets in all sorts of ways. But it has not found a radical solution from system and mechanism to the problem of continual new non-performing assets yet. Credit risks are still very great. China Banking Regulatory Commission issued "the Guide of the Implementation of the New Capital Accord for China Banking" to enhance risk management capabilities of commercial banks and enhance the effectiveness of capital regulation in February 28, 2007. This guide made clear the timetable of China's commercial banks to implement the new Capital Accord. The new Capital Accord Bank will start the implementation of the new Capital Accord by the end of 2010. Therefore, the strategy of the China Banking Regulatory Commission is to encourage large commercial banks to speed up the construction of internal rating system and enhance the level of risk management. This thesis collected the domestic and foreign information extensively and studied the credit risky management theories and methods of commercial banks systematically. It started with practical problems of the commercial banks in our country, carrying on systematic exploration and study on the credit risky management of commercial banks in our country and proposed some measures combined with the New Basel Capital Accord at the same time.The article was divided into five chapters. The first chapter introduced the background and significance of the selected topic and the research situation at domestic and abroad, as well as the study of innovation and inadequate. The second chapter had been outlined the different definitions of the credit risk of commercial banks and its main characteristic. And then it analyzed the causes of the credit risk and the approach of credit risk management. The third chapter analyzed the status of credit risk management of commercial banks of China. The forth chapter pointed out the problems of commercial bank's credit risk management. The fifth chapter gave some suggestions of credit risk management for the commercial banks of China in light of the New Basel Accord.