China's Commercial Banks Credit Risk Management Study

Risk management is the essential part of banking business. At present, bad asset rates in our commercial banks are mostly high, and credit risk is the main financial risk that our commercial banks are exposed to. The key problem that whether banks can exist and win in heat competition is a bank's ability in managing its credit risk. So, to enhance credit risk management is the urgent task that our commercial bank should face.According to banks condition in China, this paper makes research in system on credit risk management of commercial bank, with seven chapters:Chapter one: Introduces academic background of this paper. Introduces academic and realistic significance of this paper. It also introduces the ways which are used domestic and overseas on credit risk management, the basic way that how this paper use to make research.Chapter two: Introduces character, principle and procedure of credit. Introduces classification , character and main representation of credit risk. It also introduces main concepts, aim, main principle and strategy of credit risk management.Chapter three: Analyse the formation of credit risk depending on deep insight to society , enterprises , inner of banks. Points out the specialty and complexity of the course of formation of credit risk in our country.Chapter four: Discusses the significance and course of analysis on credit risk, with comments on financial ratio analysis, cash flow analysis, assurance analysis and non-financial analysis. It also introduces the main dealings of pre-warn on credit risk.Chapter five: Discusses the difference of credit risk management between domestic and oversea banks from the aspects of organization , consciousness of risk prevention , control instrument , financial management system and strategy on dealing with bad loans. It points out that we should use oversea banks' advanced ways for reference, establish credit risk management system that adapt to international competition.Chapter six: Discusses the evaluation on credit risk of commercial banks and estimation of customer credit quality. Introduces the background of the formation of credit rating system, the establishment and the application of credit rating system in different fields of banks.Chapter seven: Discusses the control of credit risk. Discuss the basic methods of prevent credit risk from the aspects of system, personnel, technology , process and integrated control. It takes the opinion that we should establish credit risk management culture so that we can control credit risk to a deep degree. It also discusses the method of disposing bad loans.