Bank On Bgt Post-loan Management Research Report

Risk management is the key to enhancing core competence of commercial banks. At present, more advanced risk management skills will be required for satisfying changing market, more micro-control and regulatory standards. However, post-loan management is weak in the risk management for most commercial banks.BGT bank as an international public-held joint-stock commercial bank, is working hard to enhance comprehensive risk management, in particular, the post-loan risk management is emphsized. Now the BGT has achieved the development in this work by improving organizational structure, regulations, technical tools and team building. This paper exposes the methods in the post-loan management of BGT, analyzes the experience in this field, and explores its direction for further development. It’s hope to provide useful cases for the post-loan management study and practice.Firstly, This paper introduces the general situation of BGT such as history, strategy and post-loan management status quo including the credit management objectives, principles and processes, as well as the post-loan management policy, departments and related responsibilities. It summarise the development in the post-loan management for recent years in BGT. Many effective measures have been taken to improve the risk identification and warning level, enhance the post-loan management capabilities and develop the business, including regular monitoring, irregular monitoring, early warning, risk reduction mechanism, credit customers’emergency management, credit customers’major issues management, credit rating management and the risk customers’list supervision. At the same time, the electronic information systems as CMIS and ARMS used for credit management have been developed.Secondly, this paper analyzes the problems in the post-loan management in BGT. On one side, the departments responsible for the post-loan management cannot fulfill the duties. Take an example, the customer managers lack initiative to do the work well who take the primary responsibility for the post-loan management department. The credit examiners are too busy on the credit appraisal to supervise the risk after lending. The risk managers also take too much work to play a better role. On the other side, the CMIS and ARMS systems can’t work well because they are independent of each other. For example, the customer managers and the credit examiners usually use CMIS, while the risk managers use ARMS. There isn’t any connection between CMIS and ARMS to support the information sharing. So the risk mangers can’t get the useful information from the process of the credit appraisal by the credit examiners and post-loan management by the customer managers.Finally, this paper proposes to make the proposition in the post-loan management clearer, improve management tools, develop risk identification and control capabilities, establish an independent, professional risk managers team, and perfect the incentive and restraint mechanisms, to deal with the problems of BGT.