Commercial Bank Customer Credit Risk Assessment And Management,

Under the market economy, keeping credit worthiness and ensuring all kinds of contractual responsibilities be fulfilled timely is the premises for the normal operation of the whole economic system. As an important part, the credit risk from the bank clients is of no exception. The said bank's credit risk is the possibility of suffering losses or making no profit on the operation of loan fund, which is the result of all kinds of uncertain factors deviating the actual profit of the business entity (the borrower) from her budget. Among all the risks confronted by our commercial banks, credit risk is the most striking, problem-centralized and spiny one.After following-up investigation and comparison, we found the trend that the credit risk comparison between the domestic evaluation methods and the foreign ones that the methods of foreign credit risk analysis have changed from financial ratio grading to multi-va riable and dynamic analysis based on capital market theory and computer information scie nee, but nowadays almost all banks in China evaluate credit risks by the methods of risk de gree computation which lack quantitive analysis. In addition, the banks in China ignore the credit risk of out-table asset and the evaluation of concentrative risk, and cannot apply the integration skills of multi-technology to analyze credit risks.After the case analysis on the Hisens Group, which adopts the 4-variable financial risk evaluation model, the result is satisfactory from the bank side. The 4-variable financial risk evaluation model enable us to find the signals, of financial risk in time and take the necessary measures at the beginning stage, which also lays the ground of loaning fund and at the same time lowers the credit risk for the bank.In order to avoid losses and keep the security of loan fund, commercial banks must improve her internal control mechanism and enhance external supervision from the centralbank. Then we can establish the effective credit-risk control system for our commercial banks.