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Study Of Commercial Bank Credit Risk Prevention Strategies

Posted on:2002-09-11Degree:MasterType:Thesis
Country:ChinaCandidate:X L HuangFull Text:PDF
GTID:2206360032953950Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Loan-making, owing the greatest portion to all the asset business activities of commercial banks, is the main source of profit. How to prevent credit risk is indispensable in the present complicated social situation. This thesis, with a macroscopic view and qualitative analysis methods, discusses precautions of credit risk comprehensively and probes into the steering and specific policies, the situations inside and outside banks as well as the increment and stock credit volume. The thesis begins with the significance of studying precautions of credit risk in commercial banks and an overview of the development in this field of China and other countries respectively. Based on the macroscopic and microscopic analysis, it outlines current situation of China抯 asset credit activities, presents an explanation of the causes to credit risks, and points out the challenges and opportunities that the commercial banks today have come across. The thesis views that prefect precaution system can help to decrease risks and thus increase bank profit although credit risk exists along with profit. Therefore, it proposes that such specific strategies as active evasion, moderate dispersion, effective control, adequate preparation, enforced restrain and proper compensation, be given with the view to a comprehensive control of credit risk,and applied to the practical precaution. Also, some concrete measures are put forward to improve the banks?external and macroscopic environment of security operation and strengthen the management of asset credit. Concerning how to perfect credit management system,the thesis focuses on idea of Business Process Reengineering. With the detailed analysis and highlight of the good experience of World Bank, it presents a practical hypothesis on rebuilding the credit business process in China's commercial banks. On the other hand ,the precaution of unsecured credit can find its expression in the risk dissolution of stock asset. Some comments are made on some practical problem-solving measures for unsecured asset credit.The objective is to offer a systematic elaboration of risk precaution in both the increment and stock credit loan.
Keywords/Search Tags:Commercial Bank, Credit Risk, Precaution
PDF Full Text Request
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