State-owned Commercial Bank Credit Risk Management Practices And External Environmental Governance Research

Finance is the core of modern economy (Deng Xiao Ping ). As the main part of china's financial industry, it is of vital importance for the commercial banks to control the credit risks, which will not only affect their business results, but also their competition strength . Furthermore, the fail of controlling the credit risks will result in the commercial banks bankruptcy, which might cause the credit crisis in the whole society. Meanwhile, the normal process of the economic development of the society might be affected.With this in mind, this paper focuses on the aspects of the commercial banks' risk control, credit management and the improvement of the external financial environment, which will contribute to the control of the credit risks.First, by defining the credit risk management of the commercial bank, the present situation of credit risks facing the state-owned commercial banks is identified, including the lack of security of the loan assets, the in creasing risks, the low profits and slow flow of the loan assets as well .Second, the credit risks of the state-owned commercial banks are analyzed with regard to theory, outside factors. mechanism of the bank and the risk management as well .Then, the commercial bank's risks control and handling of the non-performance loans in developed countries are studied ,which might give some enlightenment to our state-owned commercial banks. Therefore, it is suggested that the credit risk management should be enhanced for the state-owned commercial banks in terms of respects, including promoting the formation of the new culture and new ideas of the management, establishing new framework of controlling the credit risks, setting up the mechanism of risk supervision for the whole process ,constituting the credit risk predicting mechanism ,enhancing the construction of the commercial bank's internal control system, strengthening the improvement of the personnel quality as well as speeding up the stock reform and corporate governance. Finally, some suggestions of improving the external financial environment departments concerned, including financial credit environment construction, supervision system of the financial industry etc.