Commercial Bank Credit Risk Management

The modern market economy is credit economy, and credit is the basic of the run of the economic system. Commercial banks are special enterprises who operate the credits and money. One key factor which affect the economy is the bank credit system. So economic risks are mainly displayed through the commercial bank credit risk. Commercial bank credit risk is the possible losses that causes by the debit side that can't or will not obey the loan contract, that is to say the default risk. The credit risk is the largest risk that commercial bank faces. Once the debit side break the loan contract that the commercial will bring bad assets, lead to loss and erode the capital of bank. If the rate of bad assets of bank is too large, and the credence of people for banks are loss for some reason someday that will lead to the credit crisis of bank itself. Since 1980, there are many countries and regions who have experienced serious banking problem in the world. The weakness of bank and bank crisis are become the economic problem of the world. The east-south Asia financial crisis make the world astonished. Through every bank crisis we can find the influence of the credit risk.For historical and system reason, China state-owned commercial banks are face huge credit risk. The serious credit risk of commercial bank make we realize the urgent of researching on the credit risk management. So the study on commercial bank credits risk has great theoretical significance and reality value.This paper use general risk management theory for reference to study the management of commercial bank credit risk. Firstly, this paper analysis the general theory of credit risk and credit management and construct the basic of theory. Secondly, this paper construct commercial bank credit risk measure modal through advanced evaluating method of foreign countries. And from the reality of our country ,this paper design feasible method to measure the loan risk degree. Finally, this paper propose several strategy of commercial bank credit risk management: ①construct early-warning system of commercial bank credit risk; ②construct the depart strategy of commercial bank credit risk; ③construct the strategy of positive pricing the bank loan; ④construct the control system of CaR; ⑤ construct the deposit insurance; ⑥deepen reform, and eliminate the root of credit risk.