A Research On Credit Risk Management Of Commercial Bank Based On Corporate Governance Structure

The global financial crisis triggered by the U.S. sub-prime and the occurrence of major natural disasters make the risk of commercial banks get more and more attention. In this paper 68 samples of Chinese commercial bank is used on stepwise regression method to discuss the effect of corporate governance structure on commercial banks credit risk management performance and empirically test the effectiveness of internal governance. The Empirical results show that the credit risk management performance is positively correlated with board size and the proportion of independent directors which is on behalf of the independence of the board of directors. The research also finds that Commercial bank's credit risk management performance is negatively related to management's shareholding ratio and the number of directors who are managers. On shareholding structure, shareholding ratios of the major shareholders and foreign strategic investors are not able to explain the credit risk management performance. The credit risk management performance is negative related to the number of risk management committee members, which may be because the bank adjusts the the number of department members according to the non-performing loan ratio. This paper does research on commercial bank credit risk from a management perspective. In this paper, the credit risk management performance is measured by the real non-performing loan ratio and the new non-performing loan ratio and the conclusions of the two methods are consistent. All of these have a certain value and innovation significance.