Study On Joint - Stock Commercial Bank Credit Risk Management

According to the relevant words of New Basel Capital Accord, risks in a banking operation can be categorized as credit, market and operational risk, among which, credit risk is the most important one to deal with. Especially for commercial banks in China, although intermediary businesses have developed rapidly in recent years, deposits and loans are still the primary for-profit businesses. So credit risk management is much more important for our commercial banks.The commercial bank's credit risk is characterized by objectivity, multi-reasons, strong damage, lagging, imbalance between risk and expected return, etc. And it is derived from the borrower's risk, which arises from the changes both inside and outside.The commercial banks are always exploring and innovating the field of credit risk managements.Before the 1990s, international commercial banks usually used 5C, credit rating method and five grades classification methods, which are now widely applied in our commercial bank's credit risk management. With the improvement in bank's credit risk management, the focus of it gradually expanded from a single enterprise or a loan business to credit asset portfolio, and its management technique also includes risk transfer besides identify and control risk.The modern credit management methods in commercial banks are developed based on technique-oriented mathematics model, which include portfolio management method, credit risk model analysis and credit derivatives.Compared with state-owed commercial banks, our joint-stock commercial bank(JSCB) came into existence later, are less influenced by previous burden, and have better asset quality, more adequate capital, more sound corporate governance, higher operational efficiency, stronger profitability, smaller scale, and simpler institutional framework, so it is less difficult to put to use new credit risk management model and technique. For the above-mentioned reasons, this paper regard our joint-stock commercial bank as research object to analyze its primary credit risk management...