The Business Model Of State-owned Commercial Bank Credit Research And Design

Lending is the commercial bank's traditional core business, which generates a bank's most important income. From the annual reports 2002 of four big state-owned commercial banks, the loans to asset ratio exceeds over 60%, at the same time the interest income to whole income ratio reaches nearly 80%. The high volume and scale of the state-owned commercial banks' loan and interest income do not mean that these banks have strong competitive ability in lending. On the contrary, the improper loan structure and high non-performing loan ratio reveal the fact that the allocation of the state-owned commercial banks' loan funds is inefficient.As the five-year transition period is coming soon, the renminbi business will be completely opened to foreign commercial banks. At that time the Chinese financial service industry will be faced with very vigorous competition, and the loan business will be the focus of competition undoubtedly. It is an extremely urgent task for the state-owned commercial banks to establish a scientific and efficient credit operation pattern which suits the market and customers. The construction of such a new pattern is necessary not only for the resolution of huge non-performing loans, but also for the need to meet international competition.The thesis probes the profound implication of commercial banks' credit management pattern firstly and distributes it into credit culture, credit operation mechanism and credit structure. Next, the thesis introduces the modern methods of western commercial banks and summarizes the major characteristics of the state-owned commercial banks in different periods. Finally, by applying the theory of reengineering the bank and considering the actual condition of Chinese commercial banks, the thesis designs a new credit operation pattern for current state of the state-owned commercial banks.1.rebuild a new type of credit culture featuring 'customer-paramount' and 'top quality'.2.Set up an active marketing mechanism and an entire-process risk management mechanism.3. Reorganize an exterior compressed and interior functional credit structure.