China's State-owned Commercial Bank Credit Risk System Analysis And Control

Enormous credit risk in state-owned commercial bank in our country and its reduced huge bad assets are baffling its health developments, studying its causes is of count for much.This paper thinks the causes of credit risk in our state-owned commercial bank are different from the t developed nations .It is mainly the constitutional "vacuum" results from the change of planted economy to market economy. It is imperative to study the relations between the correspondent constitution and credit risk. It has theoried and practiced meanings to the related constitution constructive, particularly the state-owned commercial bank system.This article is based on the new institutional economies theories (it mainly includes :property rights conomy, transaction cost theory, contrct ennomy, also others ,entrust-agency theory and game theory).First it process the property right analysis to the state-owned commercial bank risk through the property rights theory ,points out the blemish of property rights in state-owned commercial bank, and put forward that it is necessary to reform the property rights and establish the modern commercial bank property rights system. Secondly, it establishes the game theory model, making use of the transaction cost theories, contract theories and information economy , to go deeply into analyzing the transaction between state-owned commercial bank and business enterprise ,pointing out that it is the market system blemish of trade between state-owned commercial bank and business enterprise to produce the credit risk of state-owned commercial bank .It count for much to reform the system of trade market. Thirdly it analyzes the shortcomings of the law institution which brings about the credit risk of state-owned commercial bank, and points out construct and perfect relative law institution. Finally, it discusses the importance of informal system(credit culture)to the credit risk and put forward that state-owned commercial banks should establish the credit risk culture management system for controlling the credit risk.