On Credit Risk Management Of China's Urban Commercial Banks

With the continuous development of the financial market, the competition within the banking industry becomes more and more fierce, and credit risk management of commercial banks is facing severe test. The situation of credit risk management is not optimistic. With a large global economic slowdown caused by sub-prime debt crisis occurred in U.S., the credit risk management is becoming truly focused. However, the loans take the large propitiate of total bank assets, the credit risk is one of the biggest risks for commercial bank to deal with. Therefore, credit risk management is one of the important parts of commercial banks'risk management, to improve the credit risk management can be regarded as positive impetus for commercial banks to enhance the core competitiveness and profitability.Due to the limitation of historical issues and congenital conditions, urban commercial banks, as small and medium-sized enterprises among commercial banks, still have many deficiencies in terms of credit risk management, i.e. weak awareness of credit risk management, their imperfect internal control system, and lack of early warning mechanism against credit risks. Urban commercial banks should, on the basis of actively learning the advanced credit risk management experience form domestic and foreign commercial banks, combine the actual situation to explore a credit risk management mode that suit for their own development.With Jiangsu Bank Y Branch as the research object, this thesis focuses on the current situation of credit risk management of Jiangsu Bank Y Branch. Based on relevant theories about risk management and credit risk management, this thesis combine domestic and foreign researches together so as to study and analyze the main problems and causes appearing in the credit risk management of Jiangsu Bank Y Branch, put forward some suggestions for Jiangsu Bank Y Branch to establish effective internal control mechanisms, implement credit operations supervision and conduct rational loan pricing and so on.