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The Application Study Of Credit Risk Mitigation In Credit Risk Management Of Commercial Bank

Posted on:2011-04-29Degree:MasterType:Thesis
Country:ChinaCandidate:Y W QiaoFull Text:PDF
GTID:2189360308476176Subject:Finance
Abstract/Summary:PDF Full Text Request
The risk that commercial bank have concludes credit risk, market risk and operational risk. Credit risk is among the most worrying problem facing the commercial bank, it means the debtor can not repay on time and the risk that is related. The happening of credit risk will bring profound influence to the whole economic system which includes the macroscopic part and the microscopic.With the aim of controlling credit risk and reducing loss brought by it, it is imperative for the bank to take effective measures to manage it. Credit risk mitigation technique is one of the ways to manage credit risk, it includes collateralized transactions, on-balance sheet netting, guarantees and credit derivatives. The use of credit risk mitigation techniques can decrease the possibilities of crisis and reduce loss when the bank issues a loan, the technique can also decrease the capital requirements because of its ability to reduce risk.The New Basel Capital Accord has specified the categories and use of credit risk mitigation techniques perfectly so that every country can finish their work on this foundation. But the New Basel Capital Accord is just a rule and no rule is suitable to every country without changes according to their realities. There are abundant experiences when these countries improve this Accord with the aim of managing this risk well. The use of credit risk mitigation technique has advantages and disadvantages in our country compared with others', the other countries'experiences will do us a lot of good. This study firstly introduced the harm of credit risk, and then analyzed the contents, effects and advantages of credit risk mitigation technique which is one of the methods to help with credit risk, at last we have the countermeasures of improving credit risk mitigation techniques through the comparison of use in foreign countries and in our country.
Keywords/Search Tags:Commercial Bank, The New Basel Capital Accord, Credit risk, mitigation technique, The capital requirements
PDF Full Text Request
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