Our Country Commercial Bank Affiliated Enterprise Credit Risk Research

Since reform and opening-up, China’s market competition has become more sharp.More and more domestic cross-regional, cross-industry enterprises began to operate in acollectivize way.Especially in recent years, associated enterprises have become animportant form of enterprise. On the one hand, associated enterprises have large scale andstrong financial strength,so commercial banks focus on the developing them as theirhigh-quality customers. On the other hand, associated enterprises are always doingcross-regional business, these associated enterprises share complex relations among eachother, their customer-structure is relatively diversified, credit situation is also uneven,andthe operation situation is hidden,It brings large difficulties to the credit of China’scommercial banks management.In recent years, from the nationwide view, someenterprises like "Nong Kai"Tie ben"""De long""Guang xia" had problems with their hugeamount of loans,and the banks suffered heavy losses, the impact spread to a large range (eg,The case of "De long" led to many financial institutions in Chongqing losing billions ofdollars because of bad loans). The more important thing is,the level of current bank grouploan’s customer-concentration is becoming higher, so the control of associatedenterprises’credit risk has become the weakness of China’s commercial bank, and has donegreat harm to China’s commercial banks. Therefore, to enhance the management andcontrol of associated enterprises’credit risk has become very urgent.In this paper, to aim at the current situation such as associated enterprises cheated debtand escaped paying back debt, and used the IRB method in "Basel II" to doing theempirical analysis of the relevant case,summed up real current situation of Chinesecommercial banks’ associated enterprises loan, and gave some countermeasures andsuggestions to solve the problems to enhance the control of Chinese commercial banks’associated enterprises credit risk.