The Credit Risk Study Of Bank Of China YiYang Branch Based On The CreditRistk+Model

With the development of Chinese credit business economy and the improvement of people's living standard, the credit business has entered a period of rapid growth. Due to the special economic environment, late starting and the lack of risk management experience, the credit risk in Chinese Commercial Banks has already appeared. In addition, internationally, sub prime mortgage crisis arisen in the United States in 2007, which not only slowdown American economy, but also exerted a heavy drag on global economic growth. In this context, it is so meaningful to research credit risks of Chinese commercial banks.Taking the Bank of China Yiyang Branch as the investigated subject, based on the VAR frame and the CreditRisk+ model, the credit risk of Bank of China Yiyang Branch is measured and analysed; some problems are analysed in the credit risk management of Bank of China Yiyang Branch. Such as the loan constructural is unrational, the rate of the bad credit and loan are still increasing and the risk is over centralized and so on. These problems appeared are due to the hidden danger of the choice of the Yiyang Branch credit target markets, the deviation of credit risk control's concept, the flaws of credit operation, the backwardness of default risk management, the lack of widespreaded credit risk culture as well as the lack of the high quality personnel. In view of the Bank of China Yiyang Branch credit risk management, proposed that the Yiyang Branch should establish the science highly effective internal credit management mechanism, raise the risk management technical level, the establishment perfect risk transformation and the safeguard mechanism, the adjustment credit structure, the optimized credit investment as well as the cultivation fine credit culture, raises aspects and so on risk awareness to raise the credit risk management level. Summarized this article main conclusion and proposed this article insufficiency and the next step research direction. In the fifth part, pointing to the credit risk management of Bank of China Yiyang Branch, I propose that the Yiyang Branch should establish a highly effective internal credit management mechanism, raise the technical level on risk management, establish perfect risk transformation and the safeguard mechanism, adjust credit structure, optimize credit investment as well as the cultivation fine credit culture, raise aspects and so on risk awareness to raise the credit risk management level.