Credit Examination Practices For Corporate Customers Of City Commercial Bank In China

Risk management of commercial banks in China is still in a period of development,especially in the current economic transition period. It is always helpless to curb the risingtrend of non-performing assets, and no good solutions to cut down non-performing assets.which become to be the biggest impediment for the development of our banking industry.And with the deepening of China’s reform and opening, with the improving ofmacro-environment like the market system, legal system, credit system etc, The reform ofChina’s commercial banks, such as, shareholding reform, entering to capital markets, willbe more integrated into the in the process of financial globalization.Facing the complicated economic and finance environment of international anddomestic, the commercial banks keep under strict supervision,and there is a heavy wayfor the risk management in reaching the strategic target.This article starting from the perspective of the credit examination practices, with thebank credit risk management under the new situation, based on the current legal andregulatory authorities stipulated that, and tried to make a appropriate analysis whencomparing with foreign banks, also combined with its own characteristics of citycommercial banks, Trying to make a study on the examination and approval for a projectloan of Company A, as an example to analyze the discourse.The first part of this article is an introduction and includes the value of creditexamination practices for corporate customers of commercial bank in China. Then itintroduces its framework, methods and contents.The second part of this article is an overview for Credit Examination of corporatecustomers in China’s commercial banks, including the meaning of the commercial bankcredit risk, the difficulty of the credit business of commercial banks, the main content ofcorporate customers credit business, and the existing problems of city commercial banks’ credit risk management.The third part, even if just study the Practice of city commercial banks’ creditexamination business, this section is not going to cover all the sides, but to focus on anddetailed to some common and contentious Points in general banking practice with thisexample of Company A which mentioned above. Combining with the characteristics of thecity commercial banks (including but not limited to its risk preference, risk tolerance,credit policy, market positioning, etc.), I tried to achieve a new thinking, a new awareness,and a new exploration for credit examination of the project loan of city commercial banks.The fourth part refers to the superficial idea to improve the ability of commercialbanks’ risk management, and draws the conclusion and outlook.