Thinking About The Shareholding Reform Of State-owned Commercial Bank Credit Risk Management Issues

With the promoting of shareholding system reform in state-owned commercialbank since 2004, as one of the important parts of the shareholding system, it's keytime to reform the risk management system. After disburdening the historical baggage,state-owned commercial banks must construct a risk management system withscientific structure, clarifying strategy, clear aim, and great sense of responsibility,which is the basic requirement on modern commercial bank that wants to develop ininternational financial market.With the analysis of the causes of credit risk, the requirement on credit riskmanagement in Basel Capital Accord Ⅱ(for short Basel Ⅱ), and the mode andmethod of risk management in American and German commercial banks, the thesisresearches how to promote the credit risk management to lay the foundation ofparticipating in the international banking competition after shareholding systemreform in state-owned commercial bank.In Chapter One, the thesis analyzes the exterior and interior causes of credit riskin stated-owned commercial bank. The exterior causes are the unimproved socialcredit system, too much government intervention, worse credit status of enterprise, etc.The interior causes are unreasonable governance structure, unadvanced managementconcept, non-marketization of management mode, unadvanced method and techniqueof credit risk management, etc.In Chapter Two, the thesis expatiates on the significance of Basel Ⅱ forChinese banking management, introduces the main contents, viz. "Three pillars &One Core", and the characteristics of Basel Ⅱ, and analyzes emphatically thedefinition and the requirements of bank credit risk management and three methods ofcredit risk measurement in Basel Ⅱ.In Chapter Three, the thesis introduces risk management system in Americancommercial bank, including the responsibility of directorate and top executive,management structure, departmental responsibility, risk measurement, independentaudit, etc. Taking example for Citigroup Inc., the thesis expatiates on the riskmanagement mode in American commercial bank. Then, taking example for DeutscheBank, the thesis introduces the risk management mode in German commercial bank,including the principle of risk management, the structure and the instruments of riskmanagement. With the study of above two cases, the thesis summarizes the generalcharacters of risk management in Western advanced commercial bank which is usedfor reference.In Chapter Four, the thesis puts forward some suggestions on credit riskmanagement after shareholding system reform in stated-owned commercial bankaccording to above analysis. First is to form the new credit risk management conceptthat should aim at maximizing the long-term benefits of shareholders, not only atdecreasing the non-performing loan, and to explore the management mode of risk andreturn equilibrium, viz. setting the risk-adjusted return as the standard of commercialbank management. Second is to construct the independent and vertical riskmanagement system in which risk management department at all levels should beresponsible and report to its superior one, to rationalize the risk management path, andto reinforce the independence of risk management. Third is to introduce the economiccapital management mode to conduct and restrict the development of commercialbank operation, to reinforce the constraint on gross risk asset, to harden the constraintof capital return on management, and to enforce the conduct on structural adjustmentof bank operation. Final is to speed up the study on the Internal Rating BasedApproach (IRB), to build the whole and consecutive database according to IRB, toresearch the risk measurement model which adapts to national conditions, to measurecredit risk scientifically and accurately, and to improve credit risk management.