Study Of State-owned Commercial Bank Credit Risk Prevention Strategies

The finance is the economics lifeline of a country and a core of the modern economy. Banking bad credit assets are important reasons that bring out social financial risks. Asian financial crisis, Russia's economic crisis, Brazilian financial turmoil, Japan and Thailand and Korea financial institutions' bankrupt and the central U.S.A. financial institutions' risk in 70-90's of the 20th century, can declare publicly from different angle that banking non-performing loan assets destroy social economy and is the most heavy hidden danger of steady finance.This text has carried on the deep-going discussion on the risk of the state-run commercial bank credit and made every effort to excavate out the rational measures that can help commercial banks of our country with their reform. It analyzes the historical reasons that made state-run bank credit formed and the problems that non-performingloan has, while compares the advanced bank--Citibank's credit risk managementwith the state-run commercial banks'. Using the typical case to make a concrete analysis of the credit risk, this text has probe into the origin cause of formation of the state-run commercial bank credit risk and found out the weak link and the break-through point of the state-run commercial bank credit management. Adopted the quantitative and natural analysis method, the risk of credit has been predicted and analyzed. Meanwhile, this text studies and points out the practical tactics of the risk management and the controlling measures of the risks from the macroscopic and microcosmic prospects.The state-owned commercial bank is a subject of the financial circles in our country; maintain the lifeblood of the economy of our country and economic security. Credit risk is formed by three factors, such as external economy environment (policy system and external imperfect credit environment), customer and bank. At the angle of bank management, it can be seen coming from the external factor and inside factor. Moving forward with our country economic reform, state-run commercial bank credit risk among which the institutional credit risk is the core risk formerly has changed the marketability credit risk. This changing course has reflected the planned banking system is transformed into marketability banking system.It is the competitions in the risk management level and the risk managerial abilitythat the modem banks really compete. The state-run commercial banks will develop into the modem commercial bank so they must make out strategy on the basis of the risk management of corporate governance structure and responsibility with unified right at the request of "new capital agreement of Basel". They must pursue the advanced manage method about the risk management of overall credit, namely advanced management idea, complete institutional framework, normal business procedure , overall management content , effective administrative skill and tight operating system. Thereby, they can take precautions against and move before controlling by risk credit and make the management of the risk ran through the whole course in the credit line.