Bank Credit Risk Prevention Based On The Corporate Governance

Credit risk caused by Credit relationship is the main risk of China's commercial banks in the management, the losses caused by the credit risk accounted for more than 80% of losses of overall risk. Based on the current profit structure of banks, the loan business is still the highest earnings of a business, in order to improve the revenue commercial banks have taken to increase the loans to meet the return requirements of investors. In the new economic situation, the increase in lending caused credit risk of commercial banks arising once again. Credit risk prevention capabilities, is directly related to the operating results of commercial banks, in the course of business, commercial banks must always adhere to the balance between safety, liquidity and profitability, we consider the realization of short-term gains, but also focused on long-term income; it is necessary to guard against the risk of the bank itself, but also must be on guard against hidden risks of the system. However, the internal management of commercial banks as a result of mismanagement and lack of credit and other business reasons, led to the credit risk of commercial banks has not been effectively controlled.China's commercial banks in corporate governance structure is not yet adequate, because of the internal control, lack of market supervision and other factors, the credit business is very easy to form a short-term behavior, so that borrowers can not repay their bank loans in full and increase the likelihood of default. In this way, most likely caused by bank depositors and other shareholders and the investment interests are jeopardized, particularly the shareholders and managers conspired, the bank creditors to protect their interests are more difficult; On the other hand, enterprises is Bank's largest borrowers, as a result of information asymmetry and internal governance mechanisms are imperfect, the loan enterprises often deliberately defaulted to bank. So, this article holds that corporate governance is a prerequisite and infrastructure for the realization of credit risk management, and improve corporate governance may control credit risk effectively. Through the establishment of scientific and rational management of commercial banks in the governance structure and mechanisms, may improving the institutional environment of credit risk , and eventually greatly reduce the commercial bank's credit risk level.Commercial banks in our country has many difference with normal business at objectives, business type, financial structure and appointment and agent relations, These reasons restricted the capacity of bank to prevent the credit risk. We comprehensively analysis the possible impact of China's commercial banks credit risk management mechanism , and compare the foreign commercial banks governance model, then, we suggest to set up a claims mechanism in commercial banks that is based on stakeholder theory, is aim to prevent credit risk ,and introduce the commercial bank creditors to join the internal governance, Sent representatives to take part in the loan business of corporate governance, can effectively prevent and control of commercial credit risk, improve business performance.