Study On Commercial Bank Credit Risk Prevention Countermeasures In China

Finance is the core of morden economy, and the commercial banking system is thus the core of financial system. Dealing with currencies, the commercial banks are endowed with great credit risk. From the very beginning, the commercial banks in different countries all seek for rish-avoiding-means to control the credit risk to the maxium. The commercial banks' credit guality is connected with the safety of themselves' in micro, and brings great influence to a country financial system even national economy in macro. Today, like the west commercial banks, Chinese commercial banks is facing all sorts of risk and need themselves to take these risks, of which the most important is the credit risk.Credit risk is the possibility which profit engender loss when using credit tool to engage credit action. The major risk Chinese commercial banks are facing is the credit risk which play an important role in national economy development. However, the guality of Chinese commercial banks' loan is low, a part of which has become the banks' bad loans . This paper bases on Chinese economical system and on the fact of Chinese commercial system and on the fact of Chinese commercial banks, and analyses the subjective and objective reasons which form Chinese commercial banks' credit risk from banks' outside (including system and corporation) and inside. The article discloses the major reasons of Chinese commercial banks credit risk high that financial system can' t suit economical reform and development,that Chinese corporation reform is delayed, and Chinese banks' management system has great difference from the need of commercial banks. At last, according to the reasons causing Chinese commercial banks' credit risk I put out some aiming suggestions: Chinese commercial banks credit risk must be controlled, been on guard and cut off from both outside and insde banks. It is possible to manage and be on guard banks' credit risk effectively only by improving macro environment, carrying forward corporation reform and improving Chinese banks' management system at the same time .