Shenzhen Rural Commercial Bank Credit Risk Management

Since commercial banks have,on the risks associated with them.Commercial banks and the biggest industrial and commercial enterprises in general is different from the commercial banks is the use of customer deposits and other borrowers as the main operating fund for operation.China is a market economy imperfect countries,the development of the commercial banks are neither standardized,and weak anti-risk capability.The high ratio of non-performing loans of commercial banks is always an important problem in our national financial reforms.While the central government has adopted some measure such as eliminating non-performing assets,injecting capital to help national commercial banks to address the problem,but the results are not so good.In the end of June 2006,the ratio of non-performing loans of wholly national commercial bank is 7.02%,while that of the four major state-owned commercial banks is as high as 8.2%.In the past years,our experts paid the considerable attention on China's banking industry risk, and write a lot of essays to discuss how to prevent and reduce it.Because of the special nature of our banking system,the four major state-owned commercial banks occupy a majority share of the domestic financial market.Therefore,these researches focus on the state-owned commercial banks,and they ignore the operation risk of rural commercial banks-a special banking group.Founded in December 9,2005 in Shenzhen rural commercial banks,as is the local financial holding local commercial banks,have in the beginning of the establishment of the "based on local,small and medium-sized service" as its operational strategy,and took the big responsibility for developing the local economy and supporting the small and medium-sized enterprises and played a vital role in stabilizing region economy and building the harmonious society.So,it has the important practical significance to study the credit risk which the rural commercial bank exists,and take the effective measures to strengthen the risk management,improve the credit property quality to help its steady and fast development.Firstly,this article mainly conducts the research from the practice work angle to the rural commercial bank's credit management.Based on the characteristics of the rural commercial banks,the first part of the article is analysis of reason of the credit risk management principle and the correlation literature.Then according to rural commercial banks' characteristic,the article first analysis the credit risk's origin,such as credit environment difference,information asymmetry,financial market construction and so on, however,what are more is the internal reasons:the weak foundation,the policy restrains, the serious administrative intervention,the low quality of staff and so on.Secondly,according to the rural commercial banks' credit operating practice,the writer thoroughly study existence certain questions and point out,in credit management, rural commercial banks also build up the "three verification" system in to carry out, including before-the-loan-investigation,loan examination,after-the-loan-inspection.If it will be worked fully,the urban commercial banks' credit risk would not be able to be so big. In fact,some conditions limit the rural commercial bank to be unable to practice the request into credit management activities completely,e.g.under the president's responsibility system,the credit management work lacks independency.And the rural commercial bank backwardness credit management method is unable to meet the increasing complex credit risk management needs and so on.Finally,using the related management knowledge,the writer suggests own proposed countermeasures:Reform the organization construction,make the credit risk management independent;Introduction of credit management information system,promote management technology;Implementation of motivation mechanism such as achievements inspection and so on,drive the actual operation department to take the credit management activities.It hopes that these measures can help the difficult position which in the rural commercial banks the true solution actual credit management activities meets.Because my time,knowledge and practical working experience is limited,based on the reference of correlation literature,the writer mainly analysis the individual reason which produced to the rural commercial banks' credit risk.According to the work experience in stock-holding commercial bank and summary of the achievement which the predecessors gain,the writer proposes the rural commercial banks' unique six big reasons in the credit risk.At the same time unifies the working condition,the writer has studied the rural commercial banks' concrete question which exists in the credit management work,and has carried on the analysis by using the example.But in the aspect of how to solve the existing question in the rural commercial banks' the credit management,this writer did not study much.The article only proposes some outline measures and the method merely.Although these methods theoretically may do,but in the practice,it must meet many questions,this has already raised some in this article.These methods cannot use in practicing immediately, but raises a reform and the advance direction after all,waits for in the further exploration.In brief,as the emerging strength in our country bank system,the rural commercial banks play the noticeable role in melting the financial risk and solving the financial problems of the small and medium-sized enterprises.It is very important for us to study the difficult problems which exist in the credit management of rural commercial banks,find the practical improvement measure,and help them to improve the property quality,speed up the development.