The State-owned Commercial Bank Credit To Exit Mechanism

At the beginning of the 80^th's of last century , China's commercial banks began their reform, and now, they have changed to modernized financial enterprises, accordingly, their main goals of operating have also changed to gain profits as more as possible. As the main access of making profits, Credit Business is the most important for banks.A major problem in banks credit business is that they lack scientific and feasible Credit Retry Mechanism, which is also one of the main reasons of credit losses of the banks.Basing on the reality of China's banking system, the article analyzes the main problems existing, and tells how should a bank establish scientific Credit Retry Mechanism from the aspects of credit retry principals, criteria, and methods. The article then authenticate the criteria with an example and at last, gives some advices to banks on the measures to take in order to improve their Credit Retry Mechanism.The thesis of the article is new and the research findings is constructive and innovative, for the first time ever, the author points out how should a bank to judge whether to retry from an customer or not, and tells how to retry. The fault of the article is that the author fails to set up a mathematical model to quantify credit retry criteria.China's banks are now facing more and more challenges from foreign banks, and one of an efficient measures is to perfect their Credit Retry Mechanism, the article provides such an method and is hopefully to take into action in banking practices.