China's Commercial Banks Credit Risk Management Study

At the beginning of this paper, it chiefly introduced the theory of credit risk management.By analyzing the mechanism of credit risk and the situation of credit risk management in China, it put forth some strategic choices of credit risk management. They are: changing the function of government, intensifying the supervision of central bank, normalizing market competition, fostering credit circumstances, perfecting credit rules of law, strengthening the construction of financial legal system, innovating property right system and financial system, perfecting interior organization, building the system of interior control and so on.At the end of this paper, it pointed out that we should use modern financial tools to manage credit risk in our commercial banks. Then it put emphasis on how to use credit derivatives to solve credit risk. Meanwhile it also illustrated the efficacy of using credit derivatives and the problems we should pay attention to. On such basis it put forth some suggestions about how to use credit derivatives to handle credit risk.