Credit Risk Of Commercial Banks In China, Under The New Basel Capital Accord

The financial crisis that engulfs the entire world has caused the West banking system to tend to collapse, the non-restraint credit risk is without doubt one of prime culprits of the crisis.Being responsible to monitor the risk of banking industry in Developed country, The Basel Committee, as early as in 2004, on once again proposed "New Capital Agreement", has improved the old version agreement, and put capital adequacy as top priority to meet various hazards and banking continuity.In 2010, "the Basel Accord III" is published officially, which set a higher request to commercial bank's risk control. The publishing of the new agreement, Chinese Large-scale Commercial banks will be confronted with both opportunities and challenges. Under the new agreement, the commercial banks will all observe the request strictly, enhance risk control and sharpen bank competitiveness. But being member of World Trade Organization for ten years, the protection regulations for Chinese financial industry will be invalid gradually. A large number of foreign banks will enter domestic banking industry, which will cause keen competition. How Chinese Commercial banks respond, particularly in regard of credit risk management, our country still lags far behind the overseas advanced management level. The bad debt, doubtful account as well as non-performing loan remaining sum are all far from being satisfactory.This paper mainly launches the elaboration on the credit risk stipulation in Basel agreement, and finds problems in our country's banking credit risk management in present situation. Through the experience stated in Basel agreement, the paper has put forward the countermeasure proposals to our country's commercial bank credit risk management. The whole paper comprises altogether 5 chapters, the first chapter is the introduction part, including research background, significance, the study method as well as the innovation and the insufficiency, the second chapter is the outline of new Basel accord, introducing the Basel accord new regulations and rules. The third chapter elaborated emphatically the credit risk stipulation of Basel agreement, took the internal rating-based approach in risk measurement as an example, and introduced the credit risk stipulation of the new agreement in details. The fourth chapter has analyzed commercial bank's current situation in our country, and listed insufficiency in our country commercial bank credit risk management at present stage. In view of preceding insufficiency mentioned above, the fifth chapter proposed some countermeasures for the problems, proposing the commercial banks to carry out reform both from technical and internal aspects, particularly on credit risk culture and internal management. The sixth chapter is the conclusion part. The author believed that, at present, overseas experience is to some extent blindly esteemed in our country's credit risk management. However, the analysis on actual conditions in our country banking industry is running short. To address the credit risk, system construction and the cultural cultivation should be put in the first place.