Causes And Countermeasures Of Chinese State-owned Commercial Bank Credit Risk

Since 1980s, as the world economic integrating, the process of financial globalization has accelerated. Various kinds of financial risks are accumulated. In our country, the state-owned commercial banks are the financial main body. So the credit risk of the state-owned commercial banks is also a focus of public concern. This credit risk is mainly demonstrated through large non-performing assets (mainly referring to bad credit assets). Huge bad loans become the largest potential risk of the state-owned commercial banks. The bad loans of China's state-owned commercial banks have accumulated for a long time. The formatting causes of it are very complex: reasons for banks, reasons for loan enterprise, and reasons for external environment.The state-owned commercial banks surviving and winning in the fierce competition depend on the management of credit risks. Therefore, how to strengthen our credit risk prevention is an urgent need to the state-owned commercial banks. Firstly, the paper analyzes the causes of credit risks of state-owned commercial banks from the banks, the enterprises and the external environment, and made concrete countermeasures and suggestions that how to prevent the credit risks of state-owned commercial banks, that is credit assets decentralization strategy, portfolio risk control strategy, risk transfer strategy and risk digest strategy. At the same time, aiming at the problems in credit risk management of state-owned commercial banks, the paper also made a number of improvements, covering the assessment system, warning system, the loan approval process and organizational framework, the incentive and constraint mechanism, the credit culture. In addition, aiming at the external environment of the state-owned commercial banks, the paper also made some advices, covering the credit registration and consulting system, cultivating a good credit environment, legislation and establishing the mechanism of supervise risks.