On Risk Management Of State - Owned Commercial Bank's Credit Assets

"Finance is the core of modern economy", whereas the asset quality of China's state-owned commercial banks, which are important components of China's financial system, is given deep concern by the public. And strengthening loan assets risk management of state-owned commercial banks, is of great importance to ensure China's financial security, social stability and economic development. In view of that, it occurs to the author to try to research on the loan assets risk management of state-owned commercial banks.The dissertation is based on the methodology of integrating theory with practice. First, it summarizes the significance and functions of tightening up loan assets risk management of state-owned commercial banks, and then specifically analyzes the problems existing in that aspect in China; Thirdly, it sums up enlightenments for China's banking industry by analyzing risk management of foreign commercial banks. In the last part of the dissertation, measures are proposed on strengthening loan assets risk management of China's state-owned commercial banks. Therefore, the dissertation is divided into the following four parts according to the aforementioned thinking.Chapter1: The significance and functions of strengthening loan assets risk management of state-owned commercial banks. In this chapter, the author first expounds on the definition, characteristics and objective of loan assets management of state-owned commercial banks, and then analyzes the significance and functions of strengthening loan assets risk management of state-owned commercial banks.Chapter2: Existing problems of China's state-owned commercial banks on loan assets risk management. The author starts with analyzing the present situation of loan assets management of state-owned commercial banks, and then elaborates on existing problems in eightaspects.Chaper3: Enlightenments from loan assets risk management of foreign commercial banks. In this chapter, a brief introduction to the loan management model of American and European countries is provided. Next, methods of preventing credit risk and disposing of non-performable loans are introduced, and last enlightenments for domestic commercial banks are stressed: disposing of non-performable debts by reorganizing and securitizing non-performable assets, building up healthy"credit culture", reforming existing bad debts cancellation and reserve system, and improving professional ethics of regulators.Chapter4: Measures taken by state-owned commercial banks on strengthening loan assets risk management. This chapter is the main part of the dissertation. On the basis of the previous elaboration, the author argues that the reinforcement of loan assets risk management should be conducted from both inside and outside of the banking industry. On one hand, four points on internal measures of strengthening loan assets risk managements are discussed:1. Further perfect loan system institutionally and reduce loan risk; 2. Strengthen internal controlling system of banks and intensify loan assets risk management, and thus reduce loan risk from inside; 3. Reorganize non-performable debts in various ways, in which the importance and operation system of asset management corporation (AMC) are stressed; 4. Converting debts into shares, selling off non-performable loans and other measures can be taken to dispose of bad debts. On the other hand, the author expounds on external measures taken to strengthen loan assets risk management, and there are also four aspects:1. Push forward macroeconomic environment reform and relative measures, and improve the quality of loan assets;2. Coordinate the relationship among enterprises, banks and government appropriately, and enhance risk-resisting ability of state-owned commercial banks. 3. Rectify social credit and complete financial laws and regulations toensure the smooth implementation of loan assets risk management of state-owned commercial banks; 4. Set up modern enterprise institution in the microeconomic entities.