Our Country Commercial Bank Credit Risk Management Research

The phenomenon of credit concentration has a long history in China’s bankingindustry. It becomes increasingly obvious after implementing the Quantitative EasingMonetary Policy in2009, which is planted hidden danger for aggravating commercialbanks’ credit concentration risk. Not only does credit concentration risk aggravatesregional imbalance in economic development, but it also easily results in commercialbanks’ short-sighted lending behavior, hampering services innovation and diversifiedrunning. Credit risk has always been the weak link of domestic banking’s risk management.It helps a bank’s stable operation and healthy growth to improve the management level ofcredit concentration risk, as well as promote the smooth transaction of present economicstructure through the sound credit system being the guide. Therefore, the necessity andimportance of credit risk management are highlighted.This paper adopts the combination of theoretical analysis and case analysis, throughcollecting credit data and credit concentration regulatory index from16banks of differenttypes, then based on the contrast of HHI index calculation, analyses domestic banks’ creditconcentration degree respectively from angle of object, industry, areas and time limit. Thisis also the innovative part. Meanwhile, summarises the situation of banks’ credit riskmanagement so as to explain the defects of managing methods and problems to be solved,then comes up with the advices.Starting from the conclusion of specific data and indexes, this paper demonstrates thatthe whole situation of China’s banking industry’s credit concentration degree is notoptimistic, and credit risk management is still in the extensive stage, which is showed inthe two aspects: supervision system is not perfect and banks’ risk management level alsoneeds to be increased. Combined with the advanced experience of international banking,relevant countermeasures are presented according to these two aspects.