Credit Risk Control In Dunhua City Branch Of Agricultural Bank Of China

Since opening in 2006 since China's financial markets, the banking industry is facing unprecedented opportunities and challenges, with the exception of the intense competition, but the domestic banking sector, in particular the formation of four years of state-owned commercial banks, the huge non-performing loans of the banking industry in China ineffective loans high proportion, this time threatening the financial security of our banking industry, according to the China Banking Regulatory Commission in late 2003,6, statistics show that China's bank balance of 254 million yuan of bad loans, bad loans ratio as high as 19.60 percent, far more than 10% of the international determine the level of credit risk, including state-owned commercial banks was 2.007 trillion yuan of bad loans and bad loan ratio was 22.19%, taking into account the special situation of the domestic banking industry, now our business The critical value of bank non-performing loans is 12.5%, but, Dunhua branch before 2008 non-performing loans has been more than 50% higher than the critical value of 37.5 percentage points, such a high rate of bad loans, how to compete with foreign banks? See this quality of assets, foreign customers are afraid to go to the domestic bank clearing operations. Agricultural Bank of China branch in Dunhua poor quality of credit assets, the high proportion of bad loans, Pulu Chu credit risk control there are some problems, the article by ABC Dunhua branch as a microcosm of how to reduce the proportion of the bank's bad loans, so as to control credit The purpose of the risks and enhance the bank's market competitiveness.First of all, the credit risk of commercial banks through the formation of the theory of learning, recognizing that, regardless of the economic base determines the theory, economic policy and economic systems related to the theory of asymmetric information theory, theory and soft budget constraints lead to bank risk bank behavior theory, can be is divided into two aspects of macro-and micro, as a grass-roots commercial banks, such as macro-economic changes in world economic crisis, uncertainty caused by credit risk, only a relatively passive acceptance, that is not entirely through their own subjective initiative should be to avoid and disperse risks, also known as systemic risk.In the micro-aspect, which is good to specify the amount spent for each credit. In these areas, depending on banks in the credit management system, the robustness of the method and operation of the basic quality of staff, at present, the bank's credit system has been related to a very strict, especially for specific high-risk customers that appropriate measures and methods, as long as are serious about the implementation is entirely possible to identify and predict the associated risks.Since 2000, Dunhua branch line has been on strengthening the implementation of superior credit management directives, organizational learning approach to credit management system, branches out to the brothers and the exchange of experience in loan administration already has been greatly improved, and credit management has been to achieve a standardized and institutionalized level, but the branches were small declines in non-performing loans accounted for, analyze the causes, partly because of objective reasons, clear non-performing loans closed space is limited, on the other is to develop new client work carried out by well, to remove natural and farmers loans, new loans to corporate customers is almost zero, in recent years, sub-branches and gradually develops high-end group-type customers, increase the proportion of high-quality assets, so as soon as possible to resolve non-performing loans accounted for the high branches of credit Risk.Through the group's Jilin Aodong Yanbian Jilin Aodong Pharmaceutical Co., Ltd., Jilin Aodong Taonan Pharmaceutical Co., Ltd., Jilin Aodong Group Hunchun Hengyuan Pharmaceutical Co., Ltd., Dunhua Jincheng Industrial Co., Ltd. The example companies credit loans, detail the operation of customer credit process, on the credit system of clients involved in risk, the risk of investment decisions, risk and credit risk associated with transactions conducted an assessment, from the corporate profile, ownership structure, corporate executives, personnel practice capacity, organizational structure, financial status, production and operation, within the unified credit to the credit approved, credit-benefit analysis, on the credit solvency of enterprises, management capability, profitability of the evaluation and approved a four-enterprises of the credit line on the credit system of clients involved in risk, the risk of investment decisions, risk and credit risk associated with transactions conducted an assessment.Relevant for credit assessment of credit risk, risk control measures proposed for the main points of our customers risk control system is to standardize the company's governance structure, clear; the risk of investment decisions to take the state's industrial policy, credit funds will be encouraged by the state the industry to go, to carefully analyze the customer's investment and development strategies; on the Group's risk-based customer related transactions in the total on to note the amount of the credit control, to prevent a single credit, the total excess risk; pay attention to the implementation of credit risk security measures to avoid duplication of security, in the theoretical line of credit, on the principle of prudent credit line approved to control credit risk; on the operational risk is if you really implement the main headquarters of the line of agricultural credit management regulations and operating procedures, standard operation required and control operational risk.The end of 2009, Tun Hwa Group affiliated branch of the Jilin Aodong Yanbian Jilin Aodong Pharmaceutical Co., Ltd., Jilin Aodong Taonan Pharmaceutical Co., Ltd., Jilin Aodong Group Hunchun Hengyuan Pharmaceutical Co., Dunhua Jin Cheng Industrial Co., Ltd. in accordance with the line of credit, the loans were issued in the strict implementation of relevant provisions of post-loan management and timely follow-up examination, required to implement credit restrictions and regulatory advice, there is well-run enterprises, loans in accordance with the intended use to use, no money for other purposes diversion phenomenon is interest-bearing assets of the bank's good.Through the case studies to illustrate Dunhua branch in the identification and quantification of credit risk has been relatively accurate, as long as required to operate strictly in accordance with the operation as a primary line of Dunhua branch is fully capable of operation to identify and control credit risks, through the development of high risk group of large customers can not only bring considerable benefits, but also can improve the branch's customer structure, increasing the proportion of fine customers, optimize capital structure, reduce the proportion of bad loans, so as to achieve the purpose of controlling credit risk.